Mediation continuing in Creeslough insurance dispute

High Court Reporter

Mediation is continuing in 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, the Commercial Court heard.

Four men, three women and three children, ranging in age from five to 59, died in the explosion on October 7th, 2022.

The dispute centres on a claim by the apartment owners that they are entitled to a form of equitable and/or beneficial claim and/or are entitled to be treated as insured under the insurance policy, which covered the Applegreen service station property where the explosion occurred.

The property is owned by Vivo Shell Ltd, which also owned three of the 16 apartments on the site. It was insured by Aviva Insurance Ireland Ltd.

Aviva is suing Vivo Shell as well as a number of the other apartment owners, who are couples and individuals.

Aviva says it wants to get the dispute resolved quickly.

It says 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 says 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 says Vivo Shell appears to acknowledge the apartment owners have an entitlement under the buildings sum insured, but there has been no agreement on how the proportions of that sum should be divided between them.

Aviva has no objection to the recognition of the right of apartment owners to a share in the buildings 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 have been underinsured for the losses which have occurred.

On Monday, Andrew Fitzpatrick SC, for Aviva, told Mr Justice Mark Sanfey the mediation process, which had begun, was continuing, and he asked that the case be put back for two weeks. The judge agreed to do so.