Law360 Canada ( November 7, 2024, 2:58 PM EST) -- Appeal by appellants from application judge’s dismissal of their application seeking declaration that respondent had duty to defend and indemnify them in the purchasers' action ("Underlying Action"), on grounds that application judge made several errors. The appellants sold a residential property. The purchasers sued the appellants alleging there were several problems with the house, and that the appellants had misrepresented its condition at the time of the sale. Before the appellants sold the property, they had home insurance coverage with the respondent insurance company. Nearly three years after the Underlying Action was commenced, the appellants reported the purchasers' lawsuit to the respondent and requested defence and indemnity protection pursuant to their home insurance policy ("Policy"). The respondent denied coverage. The appellants sought a declaration that the respondent had a duty to defend and indemnify them in the purchasers' action. The application judge dismissed the application, finding that the respondent had no duty to defend or indemnify the appellants....