The High Court has ruled that proceedings brought by owners of a house at Sorrento Terrace in Dalkey against a UK insurance broker can continue in Ireland.
Terry Coleman, Anita Coleman and Agulhas Resources Inc. sued Offley Insurance Services Limited over its alleged handling of an insurance notification after an adjoining owner brought proceedings concerning damage said to have occurred during building works.
Offley, which has its registered office in the United Kingdom, asked the High Court to set aside service of the Irish proceedings and rule that the Irish courts had no jurisdiction under Council Regulation 44/2001.
The key question was whether the plaintiffs’ case was contractual or a separate claim in negligence. The court accepted that if the dispute arose under a contract performed in the United Kingdom, the Irish court would not have jurisdiction under the contractual provisions of the Regulation.
The Colemans had used Offley as an insurance broker since the 1990s. After acquiring the Dalkey property around 1999, they obtained insurance through the broker, including cover for building works from August 2001 until February 2003.
By January 2005, a neighbour had commenced proceedings alleging damage to his chimney during those works. The plaintiffs said they informed Offley of that claim in May 2005 and asked it to notify the relevant insurers. They allege Offley failed to do so, or failed to do so adequately, causing them loss. Those allegations were not determined in this ruling.
Peart J held that the earlier contracts to arrange insurance had been completed when the policies were obtained. Any later assumption of responsibility by Offley for notifying the insurers was capable of giving rise to a separate duty of care in negligence.
The court therefore held that the claim fell within Article 5(3), rejected Offley’s motion and said the plaintiffs should amend their pleadings to confine the action to tort.