The insurer referred to the aluminum issue, but I do not see that this judgment advances its case. The judgment emphasizes that "a stipulation in the policy should be interpreted, to the extent possible, while insisting on the entirety of the policy's stipulations as a single entity." There is no dispute about this exegetical rule. In the present case, the stipulation that is the subject of the dispute can carry on its back the reasonable interpretation proposed by my colleague, Justice Zilbertal, as opposed to the very narrow interpretation proposed by the insured in the aluminum case. Where there are two equally reasonable meanings from a linguistic point of view - and in my opinion the interpretation proposed by my colleague is even more logical and reasonable than that of the insurer - we return to the rule of interpretation mentioned above, according to which the interpretation that is convenient for the insured should be preferred.
- The objective purpose of an executive liability policy is to protect a failed director. The exception in clause 4.14.3 of the policy states that the company will not be liable for a claim that was "filed or managed at the initiative or at the direction of the company or any officer". The purpose of the exception is to prevent a lawsuit initiated by the company or a controlling shareholder of the company against the company, in order to repay the insurance company for the company's losses resulting from a purely business failure. This is certainly not the case before us, that the parents can be seen as real creditors of the company, who acted through CPA Darman in order to file a lawsuit.
I also find it difficult to accept the insurer's argument in the hearing before us, according to which the insurance under the policy can be activated only at the end of the company's life, when it is appointed as a "liquidator, receiver or licensed manager". Directors' liability insurance is also intended for cases in which a lawsuit is filed against the directors in the life of the company, even if the company does not enter into liquidation, receivership or freezing proceedings.