Insurance Issues

Although the level of the settlement in this matter would appear
to fall below the $15,000.00 deductible provided in Zurich
Insurance Company Policy No. 8226946, in all probability that
policy obliges the insurer to provide a defence to claims such as
Ms. Boutcher’s.

In the course of the defence of this matter we have been billing
the City directly for legal fees and disbursements. We would
suggest that it would be entirely appropriate to attempt to recover
those expenditures from Zurich. The Company’s address is as

follows:

Zurich Insurance Company
1285 West Broadway
Vancouver, B.C.

V6H 327

Attention: Michael Snaddon

Telephone: 731-3211 Fax: 733-7417

We spoke with Mr. Snaddon. concerning the claim as. recently as
February 6, 1990. Additionally, we note that by letter dated
January 14, 1988 Terry Day corresponded with insurance adjuster
Stuart Mackenzie of Morden & Helwig Limited advising of the Notice:
of Claim which had come in from Marilyn Boutcher’s solicitors...
Accordingly, it would seem that the insurer had due and timely
notice of the claim, and that there was no obvious reason why they |
would not have been obliged to provide a defence.

We trust the foregoing is satisfactory. Should you have further |
comments or questions, please do not hesitate to call.

Yours truly,

LIDSTONE, YOUNG, sNDERSON

Michael C. Woodward
Ene.

MCW/pb
JP/1472

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