Key Facts:
- Sniper Pressure Services Ltd. (Sniper) applied to remove Ken Haluschak as legal counsel for Northbridge General Insurance Company (Northbridge), citing conflict of interest.
- Sniper’s commercial building suffered two roof collapses (March 4, 2020, and January 17, 2022), both insured by Northbridge.
- Northbridge paid Sniper ~$2,000,000 and pursued subrogated claims against third parties. Sniper sued Northbridge for an additional $650,000 in unpaid insurance claims.
- Haluschak represented Northbridge in both the subrogated claim and the defense against Sniper’s lawsuit.
Legal Analysis & Decision:
- Sniper argued Haluschak was effectively its lawyer in the subrogated claim, triggering a conflict under the Bright Line Rule (CNR v McKercher LLP, 2013 SCC 39).
- The court found Sniper was only a "nominal client" in the subrogated claim, with no direct retainer between Sniper and Haluschak.
- No concrete evidence of confidential solicitor-client information being disclosed was established.
- The application to remove Haluschak was dismissed.
Costs:
- Each party was to bear its own costs. No amount determined.
- The court allowed submissions regarding a Calderbank offer made by Northbridge.
Final Ruling: Haluschak remains counsel for Northbridge; Sniper’s application dismissed.
