A dispute over the distribution of insurance payouts to apartment owners in Creeslough, Co Donegal − where an explosion in 2022 claimed the lives of 10 people − has partially settled, the High Court has heard.
Four men, three women and three children, ranging in age from five to 59, died in the explosion on October 7th, 2022.
The court heard on Monday that the part settlement involved apartment owners at the overall Applegreen service station site who had asserted a form of equitable and/or beneficial claim and/or claimed they were entitled to be treated as insured under the property insurance policy.
The property is owned by Vivo Shell Ltd, which developed the property and which also owned three of the 16 apartments on the site. It was insured by Aviva Insurance Ireland Ltd.
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Aviva brought a case against Vivo Shell as well as several of the other apartment owners, who are couples and individuals.
Aviva said the insurance policy issued to Vivo Shell in 2022 meant the buildings were insured for €1.7 million and contents at €65,000. The amount for public liability, for any one event, was €6.5 million.
Aviva said that while the policy makes no express reference to the apartment owners as having any entitlement under the policy, since the explosion, they have asserted that they have certain other entitlements under the insurance policy.
Aviva said Vivo Shell appears to acknowledge that the apartment owners have an entitlement under the buildings’ sum insured, but there had been no agreement on how the proportions of that sum should be divided between them.
Aviva had no objection to the recognition of the right of apartment owners to a share in the buildings insurance and noted the clear difference over contents insurance. It said it has been anxious at all times to ensure no party is unduly preferred where it contends the premises have been underinsured for the losses which have occurred.
On Monday, Andrew Fitzpatrick, counsel for Aviva, told Mr Justice Mark Sanfey there had been a measure of agreement between the parties and settlement terms could be handed into court, including in relation to contents insurance.
He said Vivo Shell contends that a greater sum is payable under public liability insurance, which is disputed by Aviva, but the apartment owners do not want to get involved in that.
It had therefore been agreed that the issue is still to be litigated between Aviva and Vivo Shell, while the apartment owners will get the benefit of the outcome of that, he said.
The apartment owners will then be entitled to apply to court for any orders necessary to protect their position, he said.
He sought an order striking out the case as against the apartment owners, with liberty for them to re-enter the case to apply for any such orders.
Sanfey said a lot of hard work had been done and agreed to those orders. He adjourned the balance of the action to May.
