Hotel owner can offset debt to security firm against personal injury claims

The owner of Dublin's Russell Court Hotel, Triglen Holdings, is entitled to set off a €51,435 debt to its nightclub security firm against a potential €100,000 bill for four injury claims against it, the High Court has ruled.

The debt is to P&B Security Services, now in liquidation, the company which previously provided it with security for the hotel and nightclub, Mr Justice Garrett Simons said.

The four claims against the hotel, located on Harcourt Street, arise from alleged acts, negligence and/or failures of P&B, Triglen said.

Triglen admits it owes the money to P&B which, through the liquidator, brought proceedings to recover the €51,435.

But Triglen estimated it was facing a possible total liability of some €100,000 for four outstanding injury claims against it in which the claimants allege assault and negligence by the security firm’s employees. One case has already settled for €25,000, it said.

Security contract

Triglen said it was part of the security contract that P&B would indemnify the hotel for any such claims. Therefore, it was entitled to offset the admitted debt against them.

It also said it had requested the indemnity in circumstances where a number of security providers had previously gone into liquidation.

The security industry, Triglen said, was in general transient, with a high turnover of employees which it made it difficult to defend claims of alleged assault and left the customer of the security firm having to foot the bill.

Insurance “excess” on security service provider policies can be as high as €35,000, it said.