On April 20, 2022, the government issued Order in Council 656-2022, which makes significant amendments to the Regulation respecting categories of insurance contracts and classes of insureds that may derogate from the rules of articles 2500 and 2503 (the “Regulation”). The original version of the draft regulation with the same title (the “Draft Regulation”) was the subject of one of our publications last September. The Regulation as amended will come into force on the 15th day following the date of its publication in the Gazette officielle du Québec; that is, on May 5, 2022. Background In its articles 2500 and 2503, the Civil Code of Québec (the “C.C.Q.”) provides that the costs resulting from actions against an insured over and above the proceeds of insurance provided for in civil liability insurance contracts, including those of the defence, are borne by the insurer. In June 2021, the government amended article 2503 of the C.C.Q. to make it possible for some “categories of insurance contracts” and “classes of insureds” to be determined by regulation to depart from these rules. It is in this context that the Draft Regulation came about. It was was significantly modified following the numerous comments and observations received from various industry stakeholders. Amendments First, sections 1 and 2 were amended to specify when the insured must meet the conditions referred to in these sections, i.e., “at the time of subscription”. The duration of the contracts covered by the first two sections of the Regulation is limited to one year pursuant to the new section 3. It also specified that in the case of contract renewal, the insured must meet the conditions set out in these sections. The provisions of the former section 5 remain, with the necessary adaptations, and are now found in section 4. Finally, sections 6, 7 and 8 were simply removed. Categories of insured covered Below are the categories of insureds who may subscribe to policies that depart from the rules set out in articles 2500 and 2503 of the C.C.Q.: Section 1 Drug manufacturers under the Act respecting prescription drug insurance; Certain corporations incorporated under a private bill; and Directors, officers and trustees of such businesses, except for their activities as members of a pension committee. Section 2 Companies that are not referred to in section 1, but that meet one of the following conditions “where the total coverage under all the civil liability insurance contracts subscribed by that insured is at least $5,000,000”: Large businesses for the purposes of the Act respecting the Québec sales tax, that is, businesses that have total taxable sales in a given fiscal year in excess of $10 million; A reporting issuer or subsidiary of such a reporting issuer within the meaning of the Securities Act; A foreign business corporation within the meaning of the Taxation Act or the Income Tax Act, that is, a company that is not resident in Canada; and Directors, officers and trustees of such businesses, except for their activities as members of a pension committee. What to expect The amendments to the Draft Regulation reflect a willingness to simplify its application. In this regard, the removal of section 8 will no doubt be well received. Nevertheless, Quebec continues to be an exception to the principle of full freedom of contract. As a result, small and medium-sized enterprises in certain industries may continue to be affected by the tightening of the insurance market in Quebec, including the manufacturing sector that exports to the United States. It remains to be seen whether the Regulation will change over time. If you have any questions on the subject matter of this article or any other questions, feel free to contact a member of Lavery’s insurance team.  A-29.01.  Act constituting Capital régional et coopératif Desjardins (C-6.1), Act to establish Fondaction, le Fonds de développement de la Confédération des Syndicats Nationaux pour la coopération et l’emploi (F-3.1.2) and Act to establish the Fonds de solidarité des travailleurs du Québec (F.T.Q.) (F-3.2.1).  T-0.1.  V-1.1.  I-3.  R.S.C. 1985, c. 1 (5th Supp.).
Daphné Pomerleau-Normandin Lawyer
- Québec, 2022
Daphné Pomerleau-Normandin is a member of the Litigation and Conflict Resolution group and focuses her practice on commercial and civil litigation.
Daphné joined Lavery in 2021 as a student and completed her internship for the Bar at the firm in 2022. During her law studies, Daphne worked as a research assistant in both constitutional and criminal law. Involved in her community, she volunteered for Pro Bono Students Canada and was an intern at the Mile End Legal Clinic. Daphne also completed an intern with the judiciary of the Superior Court of Québec.
Before beginning her law studies, Daphne obtained a bachelor’s degree in political science as well as we a master’s degree in public administration from Concordia University. Upon graduating, she joined the public service as a policy analyst at the Public health agency of Canada.
Professional and community activities
- Student intern, Superior court of Québec judiciary, 2020-2021
- Student intern, Mile End Legal Clinic, 2019-2020
- Volunteer, Pro Bono Students Canada, 2018-2019
- Pierrette Rayle academic excellence scholarship, 2018
- LL.B., Université de Montréal, 2021
- M.A., Public Administration, Concordia University, 2018
- B.A., Political Science, Concordia University, 2016
Chanel CalabroChanel is a member of the Business Law group. She works primarily in corporate finance, mergers and acquisitions, and corporate law."Lavery is at the centre of developing companies in Quebec. It is for me an excellent opportunity to work with inspiring professionals in a work environment that encourages development and initiative. I am very enthusiastic about working in a practice that offers me the opportunity to use my past experiences to provide added value to our clients." Simon Gagné-CarrierSimon is joining our Labour and Employment Law group. He also practices in Municipal Law. He joined the Lavery team as a student in 2022. He completed his bachelor's degree in civil law and a master's degree in business administration at the Université de Sherbrooke. "The team of professionals who make up the firm and who have guided me are committed to strong and important values such as mentoring, professional development and collaboration between peers. It is an ideal environment for a young lawyer." Ghiles HelliGhiles is joining our Business Law Group. He is a member of our mergers and acquisitions team. He assists our partners in advising clients on the legal impacts of the implementation of new technologies and on cybersecurity. "I chose to do my internship at Lavery because of their expertise in technology law and in mergers and acquisitions law, my two legal passions. It is also a great opportunity for me to pursue my professional development with mentoring that is second to none." Kabrina PéronKabrina is joining our Labor and Employment Law group. She joined the Lavery team as a student in the winter of 2021. "Throughout my experience at Lavery, I have had the opportunity to collaborate with passionate and highly experienced professionals on various cases, who were especially committed to ensuring my professional development. It is ideal guidance at the beginning of my career." Daphné Pomerleau-NormandinDaphné is a member of the Litigation and Conflict Resolution group and focuses her practice on commercial and civil litigation. "Joining Lavery involves being part of an environment that is an ideal combination of autonomy and team spirit." Jean-Vincent Prévost-BérubéJean-Vincent is joining our Business Law Group and practises mainly in transactional and commercial law. He has joined the Lavery team for his articling term in the winter of 2022. "Team collaboration and unity are definitely the firm’s strengths. For me, Lavery was the choice of a firm, but above all of a team. I appreciate being able to collaborate on challenging cases as well as the trust and confidence that we are quickly given in the management of these cases."