Iacobucci J.
Iacobucci J. ‑‑ We are all of the view to allow this appeal substantially for the reasons of the trial judge, Wells J., and for the reasons of the dissenting judge in the Newfoundland Court of Appeal, Mahoney J.A. The Lloyd’s insurance policy was valid and binding in law and was not transferred or cancelled. Furthermore, there was no novation to release Lloyd’s from the obligations under its policy issued to Royal.
Accordingly, the appeal is allowed with costs here and in the Court of Appeal, the judgment of the Court of Appeal is set aside, and the decision of the trial judge is restored.