A FERTILISER company that claims it suffered losses of more than €1.3 million as a result of the floods that struck Cork last winter has sued an insurance broker over its alleged failure to ensure the company had flood cover.
Grassland Fertilizers claims the broker failed to arrange for insurance cover in the event of flood, burst pipes, tempest and/or storm, with the result that insurance underwriters have refused to pay out for losses suffered due to flooding of Grassland’s premises at Carrigrohane Road, Cork.
Grassland, with registered offices at Ballymount Cross, Dublin, has brought its proceedings against insurance brokers MacDonagh Boland Crotty MacRedmond Ltd, trading as AON, with registered offices at Metropolitan Building, James Joyce Street, Dublin.
The case arose after Grassland’s premises were flooded in November 2009, resulting in the alleged loss of some 70 per cent of stock stored there, both indoors and outdoors, including some €1.3 million worth of fertiliser and pallets.
The action was admitted to the Commercial Court this week by Mr Justice Peter Kelly on the application of John Gleeson, for Grassland. The judge made directions for the exchange of legal documents between the sides and listed the case for further directions next June. Brian Kennedy, for the defence, said there may be a third-party issue.
Grassland claims it had retained AON for several years to act as insurance broker and to advise on the most suitable policy of insurance cover, including for property and stock manufactured and stored at its premises at Carrigrohane Road.
It claims AON ought to have been aware Grassland held total stock valued at up to €36.8 million, subject to a maximum value of €22.9 million for stock held at any one of its properties.
