On September 29, 2000, Sweet-Ease Inc., Bakemates
International Inc., Confectionately Yours, Inc., Confectionately Yours
Bakeries Inc. and Marmac Holdings Inc. (collectively, the “
Bakemates Group of Companies”) commenced an action under the
respondent’s policy seeking indemnity for business interruption and
property losses consequent to the infestation (the “Original Action”).
 Apparently by order of Justice Spence dated October 3,
2000, KPMG Inc. (“KPMG”) was appointed the receiver-manager
of the Bakemates Group of Companies.1
 On October 13, 2000, the Bakemates Group of Companies,
along with 788986 Ontario Limited, Mr. Parravano and Marvelous
Mario’s Inc. commenced the First Action. The First Action
includes the same claims as the preceding Original Action. However, the additional plaintiffs in the First Action assert that they
too have valid claims under the policy. The claims made by
Marvelous Mario’s Inc. and 788986 Ontario Limited relate to the
loss of leasing income for space and equipment they say was provided to the Bakemates Group of Companies and for which the
Bakemates Group of Companies could not pay because they were
suffering losses arising out of the infestation. In addition, in this
action Mr. Parravano claims a $950,000 bonus he says he received
from and then loaned to one of the Bakemates Group of Companies
and for which he never received repayment.
 A proposed sale of the assets of the Bakemates Group of Companies to Amore Sweets was approved by order of Farley J. dated
December 21, 2000. The transaction closed on December 28, 2000.
 On November 26, 2002, Mr. Parravano, Marvelous Mario’s
Inc., Snack Crafters International Inc., 601552 Ontario Ltd. and
788986 Ontario Inc. commenced the Second Action. The gravamen
of that action was the allegation that the receiver committed theft
of insured equipment and assets by either retaining the items or
wrongfully transferring them to the subsequent purchaser and
that as a consequence of these acts the plaintiffs in the Second
Action suffered business interruption losses.
 Eventually, KPMG and the respondent settled the property
and business interruption loss claims made by the Bakemates
Group of Companies in the Original Action (and reasserted in the
First Action) for a total payment of $1,848,527. Justice Ground
approved the settlement as well as the activities of KPMG in its
receivership role by order dated August 6, 2003. Mr. Parravano
and his wife unsuccessfully appealed that order to this court on
the ground that the settlement amount was too low.
1 This order has not been filed on appeal.