Courts / Wicklow / Report
Bray fire insurance dispute comes before High Court
Summary
A dispute over the alleged failure by insurers to pay out approximately €1.6m on a policy of a premises in Bray Co Wicklow that went on fire is to be fast tracked by the Commercial Court. The action has been brought by Veema Ltd, The Drive Cypress Downs Dublin 6w, which owns the Everest Centre, Castle Street, Bray Co Wicklow, against Great Lakes Reinsurance UK plc, of Fenchurch London, and insurance broker The Underwriting Exchange Ltd, Tower Street London. Veema says it has suffered a serious loss as a result of the insurances firm's alleged failure to pay out. The case was entered into the fast-track Commercial Court list today by Mr Justice Brian McGovern on the application of lawyers for Veema Ltd. In its action, Veema says it was furnished with a contract of insurance in respect of the Everest Centre by the broker, which was underwritten by Great Lakes Reinsurance. The policy was obtained in 2012. It claims that under the terms of the policy the premises was covered in the event of it suffering damage from fire. On July 15 2014 the Everest Centre, which has a number of tenants, accidentally caught fire. Veema says the fire occurred when a storage unit at the rear of the Everest Centre was being cleared. It says that a third party was allowed enter the property started to remove steel shelving. While using an angle grinder it is believed the third party accidentally set fire to the property. Veema says it believes its policy of insurance covered the damage. In its action it claims the insurers are not paying out because of an alleged change in tenancy, and occupation and use of the property that constituted an alternation of risk. The underwriters say they were never informed of the changes, which amount to breaches of conditions of the policy. In its action, Veema claims Great Lakes Reinsurance UK has breached the insurance policy following its alleged failure and refusal to pay out the sums insured for. It is also claimed Great Lakes has neglected to confirm it is prepared to indemnify Veema in respect of any claims against it by tenants of the property. It further claims the broker had a duty to warn them with of any unusual terms or interpretations that would be applied to the policy by the underwriter. The failure to warn Veema of such unusual terms was negligent, it is claimed. In its action Veema seeks various orders including one directing the underwriters to pay the sum necessary to reimburse the damage suffered by it caused by the fire. That figure has been estimated at €1.6m. Veema also seeks declarations including one it is entitled to an indemnity in respect of claims made against by the tenants of the Everest Centre in respect of the fire that took place last July.
Who, what, where, when and why
What: Report matter: Bray fire insurance dispute comes before High Court. Procedural stage: hearing_or_decision
When:
- July 15 2014 Incident
- 2015-02-02 Publication
Why: In its action it claims the insurers are not paying out because of an alleged change in tenancy, and occupation and use of the property that constituted an alternation of risk. CNI source report
Case subjects
Applicant
Applicant
Applicant
Applicant
Places mentioned
Topics
Related court reports
- 'Alternative dispute resolution': man arranged 'straightener' during which dad-of-seven was stabbed to death
- Murder accused pleads guilty to violent disorder at playground
- Former accountant went on 'nationwide tour' with bank card stolen from hospital patient
- State defends use of social media photos in Bray Boxing Club shooter's trial
- Facebook photos of Bray Boxing Club shooter with gun prejudiced his jury, barrister claims
- Suspended sentence for sex assault on girl (6)
If a fact, identity, locality or legal outcome needs review, email the newsroom with this report's details prefilled.
Email a correction request