Lewis v Caribbean General Insurance Ltd

• Jurisdiction: Montserrat
• Court: High Court (Montserrat)
• Judge: Redhead, J.
• Judgment Date: 01 May 1992
• Neutral Citation: MS 1992 HC 8
• Docket Number: 4 of 1991
• Date: 01 May 1992

Lewis

and

Caribbean General Insurance Ltd

Redhead, J.

4 of 1991

High Court

Insurance law - Claim for money from insurance as a result of damage done to plaintiff's premises by Hurricane Hugo in 1989 — Extensive damage done to plaintiff's property — Plaintiff accepted part or readjusted original figure — Defendant has failed to pay the rest of its funds, $100,000 — Plaintiff took loan as a result and court held that defendant must pay interest on loan — Judgment for plaintiff to recover the said amount with interest.

Redhead, J.

1 The plaintiff, Karl Lewis, on 28th June, 1988 took out a policy of insurance for his house at Foxes Bay. This insurance was for a period of one year to 27th June, 1989. The insurance on the house was for the sum of $350,000.00 and the contents of the house were insured for $50,000.00. The total premium payable was $1,827.80.

2 Under the policy of insurance there wag an agreement that the insurance was renewable yearly for a period of five (5) years. Consequent upon that agreement the plaintiff on 27th June, 1989 paid his premium thereby renewing the insurance from 27th June, 1988 to 26 ^th June, 1989.

3 On 17 ^th and 18th September hurricane Hugo struck Montserrat with the ferocity of a force unrecorded in history. There was widespread destruction throughout Montserrat. The plaintiff's house was extensively damaged. According to the plaintiff about seventy-five percent (75%) of his roof was damaged.

4 The rafters were damaged, the shingles ware blown away, glass doors were damaged or destroyed, floor tiles, furniture and fixtures were damaged.

5 Shortly after the hurricane, the plaintiff went to the defendant(s office in Plymouth and reported the damage to the defendant(s agents, Mr. Fenton and Mrs. Dyett. He was advised that he would have to submit a claim in respect of the damages. He the agents that the claim should be prepared by a builder or someone who is competent to do so, The plaintiff engaged the services of Michael Sams a Chartered quantity Surveyor and a Fellow of the Royal Institute of Chartered Surveyors of England. Mr. Sams visited the plaintiffs premises, and on October, 1989 presented a report to the plaintiff. The plaintiff presented the report to the defendant company, the report gave an estimated costs of the damages to be $304,689.00: The plaintiff said he took the report into Mrs. Dyett who told him that they would get in touch with him. The defendant company then engaged the services of an adjuster, one Mr. Paul Collingford,

6 Mr. Sams met with Collingford on plaintiff's premises. After that meeting the estimated figure for the costs of the damages was re-adjusted down from $304,489.00 to $265,988.00 - $220,606.00 towards the damage of the house and $45,382.00 towards the contents of the house.

7 In addition to the report Sams gave evidence on oath, In his evidence on oath he said that he observed major damage to the roof about of the roof was damaged, the ring beam was damaged extensively, louvre windows were damaged, six large glass doors were broken, shelving and cupboards in the kitchen were destroyed, some of the floor tiles were shaking. He also said that he observed a lot of damaged furniture downstairs on the plaintiff's premises.

8 The plaintiff testified that after Mr. Collingford had met with Mr. Sams and the claim was re-adjusted to $265,400.00. He was called in by Mr. Fenton the defendant's agent who asked him to of the payment because the company was in difficulty. Mr. Fenton made a part payment of $165,400.00 which he accepted. According to the plaintiff Mr. Fenton promised to pay the balance by June, 1990.

9 The defendant, recording to the plaintiff hay refused to pay him the balance of the insurance money, claiming that the payment made to him was not in fact the final settlement. The plaintiff said in his testimony as a result of the defendant's failure to pay him the balance of the insurance money he was forced to borrow fifty thousand dollars ($50,000.00) from Barclays Bank, in order to do some urgent repairs to the house. For that loan he is paying fifteen percent (15%) per annum interest.

10 By paragraphs 3 & 4 of the defence, the defendant pleads as follows:–

• 1) The defendant denies that any agreement was made with the plaintiff to settle the...