Limitation on Defense – 2
The Court of Appeal concluded that if 21st Century “failed to conduct a thorough investigation,” there could be no “genuine dispute” as there is now a controversy about the adequacy of that investigation. In other words, even if 21st Century initially “harbor[ed] actual doubts” about the claim, triable issues of fact remain regarding whether “a reasonable investigation would have disclosed information making those doubts no longer tenable.
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