September 2011 date for Dyoll trial
Published:Wednesday | October 6, 2010 | 12:00 AM
A trial date of September 2011 has now been set for the case that the joint liquidators of Dyoll Insurance Company has brought against former reinsurer Aon Benfield Canada, formerly Aon Re Canada, claiming negligence in its advice as reinsu-rance broker, allegations which Aon denied. Early this year, Dyoll Insurance served Aon Benfield Canada with a lawsuit claiming damages of US$19.86 million, the matter being brought before the Jamaican Supreme Court in April 2010.
But, in accordance with civil court procedures, the matter was referred to mediation. No compromise could have been arrived at between the parties and a decision was made to proceed to a court trial.
"Both parties met to try and arrive at a settlement, but none was reached. Aon made an offer that was too low and they just could not find a suitable settlement that both were comfortable with," said Debra Dodd, the representative agent for the Jamaican liquidator.
Mediation proceedings
According to Dodd, Aon Benfield made an offer of US$1 million, revising it to US$2.5 million, a figure much too low for the joint liquidators to agree to.
"A trial date is set for September 2011, having gone to case management with certain disclosures now to be made leading up to the trial date," Dodd explained.
The mediation proceedings took place on August 31, following which case management was done on September 22.
"The process of discovery is now ongoing, where both parties will now have to disclose documents which they intend to rely on to the other party," said Debbie-Ann Gordon, attorney-at-law representing the joint liquidators.
"While each orders have separate deadlines to be submitted, all orders will have to be received by April 2011," she said.
Dyoll Insurance collapsed in late 2004 when it was swamped with claims after Hurricane Ivan devastated properties and crops for which it could not pay.
Dyoll wrote insurance coverage for clients in Jamaica and Cayman, with liquidators being appointed in both territories after the company went bankrupt.
John Lee, the Jamaican liquidator in the case, had previously asserted in an interview that the cause of the collapse was that the reinsurance bought by Dyoll was inadequate.
Charges denied
Aon Benfield Canada acted as the company's reinsurance broker, at the time advising the type of reinsurance to be purchased by Dyoll, but the company has denied the charges.
"Aon Re failed to advise upon and procure adequate and available reinsurance to protect Dyoll and minimise exposure from possible insurance claims. As creditors will recall, it was the lack of adequate reinsurance to offset the losses resulting from Hurricane Ivan that resulted in Dyoll's inability to pay insurance claims in full, which led to it being placed in liquidation," stated a press release from the joint liquidators.
So far, the joint liquidators said they have made adequate provision for the potential costs of this litigation and are in a position to pursue the claim vigorously.
In addition to this case, Dyoll also has a case against its parent company, Dyoll Group of Companies. A ruling is still pending.