In what circumstances will the tortfeasor’s insurer and the underinsurance insurer split the costs of the action?

Ontario, Canada

The following excerpt is from Jungwirth v. Robertson, 2011 ONSC 3021 (CanLII):

In deciding that the tortfeasor’s insurer and the underinsurers split the costs of the action in Burns v. Hedge, the court considered the following factors: a. all insurers participated in the litigation through productions, discoveries and medical examinations; b. all insurers were parties to the action; and c. all insurers opposed the plaintiff’s claim and sought to limit their own exposure.

In Mete v. Guardian Insurance Co. of Canada, the court also considered the fact that the underinsurer was an active participant in defending the litigation a relevant factor in awarding costs against the underinsurer.

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