Supreme Court reverses ruling in £30m meat case

The Supreme Court yesterday found that a major English insurance company did not act as placing broker in respect of insurance cover on intervention beef valued at some £30 million (€38 million) which was destroyed in a fire in Co Roscommon eight years ago.

The three-judge court overturned a High Court decision that the English company, Nelson Hurst Marine Limited (formerly Citicorp Insurance Broker (Marine) Limited), did act as placing broker in respect of the placing, handling, management or renewal of the Department of Agriculture's marine assurance policy with Allianz France Iardt.

The High Court decision was made on a preliminary issue between Mike Murphy Insurance Brokers, of Trinity Street, Dublin, and Hurst arising out of the loss of meat stored at the United Meat Packers' plant at Ballaghderreen. Mike Murphy brokers were entrusted with the placing of the insurance and it has been claimed DB Agencies was used by Mike Murphy for the placing of the insurance.

The Minister claimed that, if there was any failure to disclose a material fact to Allianz, responsibility was on Mike Murphy or DB Agencies. In turn, Mike Murphy and DB issued proceedings against a number of other companies, including Hurst, claiming indemnity in relation to the Minister's claim against them.

Reversing the High Court's finding yesterday, the Chief Justice, Mr Justice Keane, said a meeting was held in Paris on January 29th, 1990, with a view to putting in place an insurance arrangement on behalf of the Minister and beef exporting companies. It was attended by Mr Mike Murphy and Mr Caprani, of Mike Murphy, and representatives of DB and Nelson Hurst.

It was agreed a number of insurers was required for the large cover involved and that the lead insurer would be Allianz, which would issue the policy and take decisions whether liability would be accepted or repudiated for specific risks.

Mr Justice Keane said he was satisfied the High Court, in deciding that no distinction could be drawn between the business placed on the English and on the French market, had overlooked the evidence of Mr Mike Murphy himself in which he had agreed that the arrangement was that Hurst would secure underwriters in the English market to cover 47.5 per cent and that DB would secure underwriters to cover the 52.5 per cent for the French market.

The Chief Justice said he would allow the appeal. Mr Justice Barron and Mr Justice Hardiman agreed.