LOLG Successful in Precedent-Setting Insurance Coverage Application

On July 14, 2025, Hovsep Afarian, Dennis Ong and Nigel Olesen were successful in a precedent-setting Application for insurance coverage on behalf of Fairmont Hotels & Resorts (now known as Accor). Fairmont previously settled a California class action based on the alleged disclosure of excessive customer credit card information arising from a glitch in software installed by another party. Fairmont successfully recovered a portion of the class action settlement from its “errors and omissions” insurer, Chubb. However, Chubb refused to indemnify Fairmont for the claims of class members which Chubb alleged arose from acts after Fairmont was acquired by Accor.

The Ontario Superior Court of Justice granted the Application in favour of Fairmont, holding that the claims by all class members were “Related Claims”. The “Related Claims” provision linked together all logically and causally connected claims. Accordingly, the Applicant was entitled to coverage for the claims of all class members irrespective of the acquisition of Fairmont by Accor.

The judgment is an excellent result for LOLG’s client. It is also a significant precedent regarding the frequently encountered issue of interpreting insurance policies which have a “related claims” clause.  

The decision can be found here.