UAE court cancels Dh5-million payout for warehouses gutted in fire

Abu Dhabi - Insurance firm claimed the company had set up the fire.

Published: Mon 15 Feb 2021, 3:50 PM

Updated: Mon 15 Feb 2021, 4:03 PM

By
Ismail Sebugwaawo

The Federal Supreme Court in Abu Dhabi has cancelled a ruling that obliged an insurance company to pay a commercial establishment Dh5 million for the loss it suffered in a fire. The judge ordered that the case be heard again by the appeals court.

The massive fire destroyed everything inside the warehouses, causing huge financial losses for the complainant, court records show. Both facilities were under the defendant’s insurance coverage.

After assessing the loss, the establishment filed a commercial lawsuit against the insurance company, demanding Dh10.8 million in compensation for the damages and an annual interest of 12 percent from the date of the claim until the full payment.

The court had appointed an accountant expert and another fire specialist to look into the matter. And after their reports were submitted, the court of first instance ordered the insurance firm to pay the plaintiff Dh5.3 million and a 5 percent annual interest. Both parties challenged the ruling, which was upheld by the appeals court.

The insurance firm and the commercial establishment went to the UAE’s top court, which cancelled the previous verdict and ordered a fresh hearing.

At the Supreme Court, the defendant argued that the previous verdicts violated the law and some rules were wrongly applied.

The insurance firm claimed the commercial establishment had intentionally started the fire using gasoline. Its lawyer argued that based on the prosecution’s investigations, there was no sign that doors of the warehouses were broken open during such an emergency case. The plaintiff, he added, was the one who kept the keys, indicating that they could have intentionally set up the fire.

The lawyer said that three months before the incident, the plaintiff had requested an insurance supplement that includes their civil liability towards others, adding that their financial situation was poor.

Prosecutors’ investigations also revealed that the fire extinguishing system on the ceiling of one of the warehouses was not working, and no maintenance was carried out to address the issue.

ismail@khaleejtimes.com