An insurance company has settled its action against the operator of a Galway leisure centre and a loss-assessment firm over an alleged fraudulent invoice used to claim money alleged to be greatly in excess of damage caused to the centre by a storm.
The terms of settlement were not disclosed. FBD Insurance had brought proceedings against Claregalway Leisure Centre (CLC) Ltd, a community organisation that runs a leisure centre in Claregalway. The defendant then applied to have a loss adjustor, Frank McNabb Insurances Public Loss Assessors Ltd, joined as a co-defendant and also sought an indemnity against it.
The centre claimed it used the assessors to deal with various aspects of its claim over the damage.
Both defendants denied the claims by FBD, which arose after the centre’s roof and its interior were damaged following a storm on January 17th, 2009.
FBD, which insured the premises, claimed an invoice from a flooring company contracted to carry out repairs to the centre had been fraudulently altered to claim money “greatly in excess of the true amount due”.
Interim payment
FBD, represented by Marcus Daly SC, with Frank Duggan, instructed by solicitor Gerard Gannon, sought the return of an interim payment of €32,800 made by the insurer to cover the costs of the repairs to the centre, plus a loss adjusters’ fee of €6,000 and other expenses.
As the invoice was fraudulent, the defendants were not entitled to retain any money paid out to them, and the payment out should be returned to FBD, counsel said.
The leisure centre denied the allegations and counterclaimed for payment of money which it contended it was entitled to under its policy with FBD. It claimed it cost about €118,000 to repair the damage caused by the storm. Under its policy, it was entitled to some €82,000 from the insurer, of which €32,800 was paid, it was claimed.
The insurer, because of the alleged fraud, refused to pay out the balance of what CLC claimed it was owed.
As well as seeking an order for judgment of more that €49,200 against FBD, the leisure centre company sought exemplary and punitive damages from FBD due to the insurer’s conduct in the handling of the claim.
The centre, represented by John Jordan SC, also said it had relied on the expertise of a third party, Frank McNabb Insurances Public Loss Assessors Ltd, to negotiate with the insurers and with suppliers whose invoices were allegedly doctored to inflate the price contained.
That company, with an address at Main Street, Clarinbridge, represented by Andrew Walker, denied all claims of fraud made against it or that it had retained any money paid out by FBD.
The case opened before Mr Justice Michael McGrath but was adjourned to allow the parties to attempt to resolve matters. When it resumed on Wednesday afternoon, Mr Daly, for FBD, said the case had been settled and could be struck out.
