A financial services provider debarred an employee and representative (who had taken up other employment whilst still employed and lied about it) without giving the representative notice and a fair hearing in terms of the Promotion of Administration Justice Act (PAJA) before doing so. The representative sued for damages for lost income based on this
September 2017
Two year insurance time-bar upheld (US)
A Delaware court upheld a two year time-bar in relation to a property damage insurance claim arising from Superstorm Sandy because the action was instituted more than two years after the 2012 event and after coverage was denied by the insurer in 2013.
The limitations clause provided that ‘no suit, action or proceeding for the…
Be careful how you draft resolutions empowering someone to sign
A resolution in favour of one of three trustees by which he was ‘authorised to sign the necessary documentation’ could not be construed as a general authority to enter into contracts. In the context it was held that this resolution only authorised the purchase of a farm and the authorised signatory was not entitled to…
Shooting of wife not covered by employers liability policy (USA)
A Florida jury found that an insurer did not have to provide an indemnity under a general commercial liability policy of a cable installation company when the sole member and employee of the business went home on his customary mid-morning bathroom break and whilst there got into a fight with his wife and shot and…
Aggregation of claims for related transactions
Where a policy aggregated claims for ‘similar acts or omissions in a series of related matters or transactions’ the enquiry was whether there was a real connection between the transactions in which they occurred.
The use of the word ‘related’ implies there must be some interconnection between the matters or transactions so that they in…
Insurance claim barred because of once-and-for-all rule (US)
A New Jersey appeals court held that a contractor’s lawsuit against the insurer demanding cover for a claim against the contractors arising from a construction defect was barred because the claim should have been brought in a previous lawsuit that had freed the insurer from any duty to defend the third party claim.
The original…
Insurance exclusion for ‘that particular part’ on which ‘performing operations’ (US)
The insured subcontracted a builder to build 53 prefabricated modular units for its residential blindness rehabilitation facility. The insurer denied an indemnity for water damage under a partly completed roof saying that the applicable exclusion barred coverage for ‘that particular part’ of property on which the policyholder or its subcontractors ‘are performing operations’.
The units…
Revised competency standards for pharmacists published for comment
The South African Pharmacy Council has published revised competency standards for pharmacists for public comment.
As the statutory body responsible for regulating the pharmacy profession in South Africa, the Pharmacy Council first developed a competency framework for pharmacists in 2006. Following a review process, those competency standards are now being revised to bring them in…
Court restates principles relating to the duty of utmost good faith in insurance contracts (UK)
A UK court has found that an insurer is entitled to avoid a policy where the insured had misrepresented the state of repair of the insured property and failed to disclose malicious acts and vandalism which had the effect of increasing the risk of fire in the property.
The insured, a mixed commercial and residential…
Struck off doctor practising without insurance refused appeal (UK)
In August 2017, the English Court of Appeal denied an appeal to a gynaecologist who was struck off the roll for practising without professional indemnity cover, which is compulsory in the UK.
The doctor, who had a substantial private practice, was uninsured for a period of 5 years between 2007 and 2012. Until 2002, he…