A dispute over the distribution of insurance payouts to apartment owners in Creeslough, Co Donegal, where an explosion claimed the lives of 10 people, has come before the High Court’s commercial division but is due to be mediated.
Four men, three women and three children, ranging in age from five to 59, died in the explosion on October 7th, 2022.
Aviva Insurance Ireland Ltd is suing Vivo Shell Ltd, owner of the property on which an Applegreen Service Station operated, and which also owned three of the 16 apartments built on the site.
Aviva is also suing a number of the other apartment owners, who are couples and individuals, and who are claiming a share in the insurance payout for the damage.
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On Monday, head of the Commercial Court, Mr Justice Mark Sanfey, said it was a difficult and sensitive matter and he was satisfied he should admit it to the fast-track commercial list because the amount of money involved meets the threshold for doing so.
It followed an application by Andrew Fitzpatrick SC, for Aviva, who said none of the defendants objected to admitting the case to the Commercial Court.
He said his client’s interest is in getting the matter resolved quickly. There are 60 third parties who have issued claims and the outcome of this case will have a consequence for them, he said. There is an interest for everybody to have this resolved quickly, he said.
Everyone had tried to resolve it and has now agreed to go to mediation, he said.
Counsel sought an adjournment to allow for mediation to take place and, if not successful, the court could then make directions as to how the case should proceed.
Mr Justice Sanfey adjourned the case to the end of November.
In an affidavit seeking entry of the case to the Commercial Court, Michael Corrigan, solicitor for Aviva, said the insurance policy taken out by Vivo Shell in August 2022 states the buildings were insured for €1.7 million and contents covered at €65,000.
The amount for public liability, for any one event, was €6.5 million.
While the policy makes no express reference to the apartment owners as having any entitlement under the policy, they have since the explosion asserted that they are entitled to a form of equitable and/or beneficial claim and/or to be treated as insured under the policy, Mr Corrigan said.
Vivo Shell appears to acknowledge the apartment owners have an entitlement, but there has been no agreement on how the proportions of the insured building sum should be divided between them, he said.
The apartment owners also say they have an entitlement under contents insurance, but Vivo Shell does not recognise this.
[ Creeslough case a wake-up call for apartment owners across IrelandOpens in new window ]
Aviva says it has no objection to the recognition of the right of apartment owners to a share in the building insurance and notes the clear difference over contents insurance. It says it has been anxious at all times to ensure no party is unduly preferred where it says the premises has been underinsured for the losses that have occurred.
Mr Corrigan said he has engaged directly with five solicitor firms representing the apartment owners and Vivo Shell.
He said earlier this year there was a “broadly positive” reception to proposals to resolve the matter. However, it has not been possible to get acceptance from all the respondents.
