DIFC 002/2024, [2024] DIFC CA 002 issued on 2 July 2024
Lals Holdings Limited (and The Companies Identified In Schedules 1 To 3 Of The Claim Form) v (1) Emirates Insurance Company (PSC) (2) Siaci Insurance Brokers LLC
Type
Case
Court
Dubai International Financial Centre - Court of Appeal
Jurisdiction
Dubai International Financial Centre
Taxonomy
Terms, Insurance Contract, Insurance Claims & Payments
Decision date
2 Jul 2024
Catchwords
COVID - Business Interruption Insurance - Construction of Contract - Appeal - Contract Interpretation - Commercial Common sense - Loss of Attraction Clause - Closure Clause- Inconsistencies
The original dispute involved the clauses of a business interruption insurance policy which applied as a result of COVID 19 action's impact of retail businesses. This appeal looked at the interpretation and relationships of different clauses in the contract.
Background
The LALS Group of Companies (alleged that its business interruption insurer, Emirates Insurance Company (PSC) (EIC) had wrongfully refused cover for business interruption losses arising out of the COVID-19 pandemic. In the alternative, LALS alleged that their insurance broker, SIACI Insurance Brokers LLC (SIACI) had failed to arrange suitable insurance and was in breach of its contractual and tortious duties.