In the case, A.J Building and Plastering Ltd attempted to
sue Samantha Turner, Sheila Munday and Martin Dalling, who were all insured by
Zurich, for money owed to them following work carried out to rectify flood and
storm damage to their homes in 2009.
Rok Building were appointed by Zurich to carry out the
necessary repairs, who in turn subcontracted the work to local company A.J
Building and Plastering Ltd.
Zurich paid Rok for the work. However, Rok went into
administration soon after and failed to pay A.J Building.
A.J Building went to the High Court claiming that the three
householders were personally liable to pay for the work carried out. It cited
paperwork signed by the trio which, it claimed, put them under contractual duty
to cover the payments.
However, the Judge (Andrew Keyser QC) dismissed A.J
Building’s argument, saying that it would be wrong to make the policy holders
bear the risk.
He decreed the company had been the final link in the
contractual chain and it would be wrong to make the householders account for
money, paid by Zurich, “disappearing in Rok’s hands”.
The policy holders were absolved of all liability by the
judge.
Homeowners should always have comprehensive home insurance
provided by the likes of Discount Insurance.
Richard Williams
Source: Insurance Times
