·  Background:
The appellants sold a residential property in Gorham, Ontario, in 2016. In 2018, the purchasers sued them for misrepresentation regarding the house's condition. In 2021, the appellants sought defense and indemnity under their home insurance policy with the respondent. The insurance company denied coverage. The appellants initiated a legal action to compel the insurer to defend them.

·  Lower Court Ruling:
The application judge ruled that the insurance company had no duty to defend or indemnify the appellants, citing that the entire agreement clause in the sale contract precluded the purchasers’ claims and that the insurance policy’s exclusions applied.

·  Appeal Issues:

1. Whether the insurer had a duty to defend based on the policy.
2. Whether the "entire agreement" clause in the sale contract invalidated the purchasers’ claims.
3. Whether the appellants' late notice to the insurer justified the denial of coverage.

·  Appeal Decision:

• The Court of Appeal agreed with the application judge's error regarding reliance on the entire agreement clause but upheld the result. The key reason for denying coverage was the appellants' failure to provide prompt notice of the claim to the insurer, as required by the policy.

·  Outcome:
Appeal dismissed. Cross-appeal allowed. The appellants were ordered to pay $10,000 in costs.