Key Issue:

Beazley Syndicates AFB 2623 and AFB 623 at Lloyd’s (Beazley) sought disclosure of 200 documents Irving Shipbuilding Inc. (ISI) claimed were protected under solicitor-client privilege and common interest privilege (CIP).

Background:

• ISI, as prime contractor for Canada’s Arctic and Offshore Patrol Ships (AOPS) Project, was required to obtain specific insurance.
• ISI engaged Integro (Canada) Limited to secure coverage under a Marine Professional Liability Insurance Policy issued by Beazley.
• During arbitration with its subcontractor, Odense Maritime Technology (OMT), ISI won a $170 million award.
• Beazley refused indemnification, leading to ISI’s lawsuit seeking full coverage.

Court’s Analysis:

• Solicitor-Client Privilege: ISI’s communications with legal counsel regarding the insurance policy were protected.
• Common Interest Privilege (CIP): ISI shared legal advice with Integro to ensure compliance with Canada’s strict requirements.
• The court found ISI and Integro had a mutual legal interest, meaning privilege was not waived.
• In-Camera Review: The court declined to examine the documents under CPR 85.06, ruling ISI’s descriptions were sufficient.

Decision:

• Beazley’s motion dismissed; ISI’s privilege claims upheld.
• Costs were awarded to ISI, but the amount was not specified.