Event and Time
Event Description
- An incident occurred on 18 October 2018 at a construction site managed by Mr. Hanna, where a formworker, Mr. Hasan, slipped and fell from scaffolding, resulting in a significant injury.
- Mr. Hanna held a public liability insurance policy with AIG covering the period of the incident.
Application and Claims
- Mr. Hanna filed a claim for indemnity under the policy after the injury incident.
- AIG rejected the claim, alleging fraudulent non-disclosure by Mr. Hanna regarding the nature of the project and the basis of his involvement.
Judicial Decisions
- The primary judge held that the insurance policy could respond to Mr. Hanna's liability as determined by a consent judgment, thus requiring AIG to indemnify Mr. Hanna despite his alleged misrepresentation.
- AIG's appeal against the decision was dismissed.
Dispute Points and Legal Basis
Dispute Points
- Mr. Hanna’s Claims:
- Asserted the insurance policy covers liabilities arising from the incident despite AIG's repudiation. - Argued that the settlement amount paid to Mr. Hasan was reasonable given the circumstances.
- AIG's Arguments:
- Claimed the policy was void due to fraudulent misrepresentation by Mr. Hanna regarding his role and the project. - Contended that Mr. Hanna needed to prove actual liability to Mr. Hasan to claim indemnity and challenged the reasonableness of the settlement.
- Third Party (Mr. Hasan):
- Presented evidence of the incident and injury sustained, maintaining that liabilities have arisen from Mr. Hanna's management of the site.