Insurer argues to move case

The Supreme Court will hear a challenge from an international insurance firm today which wants to move a case it has taken against Limerick-based chip design firm Analog Devices to the US.

Zurich Insurance wants to overturn a High Court ruling which said the case involving the liabilities arising from "a business interruption incident" at Analog's chip plant should be heard in the Republic. Analog Devices, which employs almost 1,500 people at its chip design centres in Limerick and Cork, wants the case to be heard in the Republic.

Interruptions of just a few hours at semiconductor plants can result in hundreds of thousands of pounds in losses, according to industry sources. But it is not known how much Analog is claiming from its insurance policy with Zurich or why it wants the case heard in the US.

Integrated circuits manufacturer Analog Devices recently made 94 staff redundant at its Limerick facility in response to difficult market conditions. It is closing its plant for three weeks this Christmas to reduce costs and staff have been asked to take their annual leave at this time. The company also closed its plant for two weeks in August.

Zurich Insurance, a member of the Zurich Financial Services Group, recently came to prominence over its claims that Westfield Holdings, a US shopping centre group, had failed to cover its mall in the World Trade Centre.

Zurich Insurance, which covers all of Westfield America's US malls, said its policy with Westfield did not cover the World Trade Centre when the planes crashed on September 11th.

In early November, Westfield said it would fight the complaint, saying it was automatically covered by a clause in its contract.