Duty to Defend Goes Too Far?

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Damon Tedford was being sued in regard to certain representations he made on a seller property information sheet by the person to whom he sold property in Ottawa. He submitted the claim to his insurer (TD Insurance -- The decision doesn't indicate the type of policy at play, but I assume it was under Tedford's home policy). TD refused to defend Tedford on the basis that there was no duty to defend...

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