Does a third party have a contractual responsibility to defend this action?

British Columbia, Canada


The following excerpt is from Shragie v. Tanemura, 1987 CanLII 2399 (BC SC):

I follow with respect that part of the Chief Justice's judgment which approves Bacon v. McBride, supra, and agree with counsel for the defence that the third party has a contractual responsibility to defend this action irrespective of whether or not the insured can ultimately be found liable to the plaintiff or whether or not that liability would be within the terms of coverage under the insuring agreement. The defendant's statements in court are pleadings and even his answers on discovery are subject to the proceedings at trial when the court will make its own findings.

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