Barbara Gayle, Staff ReporterThe long delay in settling a $4 million claim when the late Edward Shoucair's dry goods store at 40 Harbour Street, Kingston, was gutted by fire in 1989 has resulted in the executors of his estate pursuing a suit which he had filed to recover millions of dollars from an insurance company and a firm of loss adjusters.
American Home Assurance Company and American International Underwriters Ltd., loss adjusters, are the defendants to the suit. Mr. Shoucair had insured his store and contents with eight insurance companies of which American Home was the lead insurer.
British Caribbean Insurance Company Ltd., which was one of the insurers, settled Mr. Shoucair's claim promptly but the other companies refused to settle and a long legal battle ensued in which the companies raised various defences, one of which was that the claim was time-barred. The insurance companies accepted liability in 1991 but a dispute arose as to the amount to be paid. The matter was referred to arbitration.
Former Chief Justice Kenneth Smith was appointed arbitrator and he awarded Mr. Shoucair the full amount payable under the policy plus a landmark interest award of 50 per cent per annum from the time of the loss to the date of the award in 1993.
Following the arbitration award, Mr. Shoucair filed two lawsuits against the seven insurance companies claiming millions of dollars for the losses which he suffered as a result of their delay in settling his claim and devaluation of the Jamaican dollar. The other insurance companies settled the claim with the exception of American Home and its affiliate American International Underwriters Ltd.
Justice Wesley James began hearing the suit in April this year and the hearing is to resume on July 23.
Dennis Goffe Q.C. and Haydee Gordon, who represent executors Marianne Hugette Shoucair and Anthony Shoucair, have argued that American Home owed Mr. Shoucair a duty of good faith which included a duty not to cause him injury or loss by its acts and omissions and to settle claims without unreasonable delay. They also submitted that the company had a duty not to cause intentional harm or deliberate loss to Mr. Shoucair. It is also being contended that American Home had a duty to appoint independent loss adjusters.
Contentions
One of the contentions is that American Home was responsible to pay 22 per cent of Mr. Shoucair's $4 million claim. As a result of being paid $880,000 of the $4 million in May to June 1993 instead of in April 1990, Mr. Shoucair suffered loss and damages in the form of foreign exchange losses amounting to J$1.9 million. The court is also being asked to award damages for unjust enrichment.
Several witnesses testified for the plaintiffs including John Jackson, financial analyst, as to interest rates and the devaluation of the Jamaican dollar during the relevant period.
The defendants, which are being represented by Dennis Morrison, Q.C. and attorney Julianne Mais, are contending that litigation and arbitration clauses are usually provisions of any policy of insurance. The said contract of insurance contained such provisions to protect the plaintiff's interest in the event of any failure to reach an agreement on any issue. It is being argued that Mr. Shoucair, by resorting to arbitration and litigation, was exercising his contractual right and having succeeded was awarded the maximum possible award with maximum interest.
They are contending also that the plaintiffs are not entitled to any damages.
