~ NAGICO to pay in 4 to 8 weeks ~
PHILIPSBURG–While Princess Juliana International Airport’s (PJIA’s) managing and supervisory boards say they are “satisfied” with the verdict of the Court of First Instance ordering NAGICO Insurances to pay PJIA an advance of US $33.2 million, the insurance company says the verdict actually vindicates NAGICO’s position.
“NAGICO has always been prepared to pay PJIA what is legitimately due to them for the damage suffered from the hurricanes. The fact that the court did not award the full and unsubstantiated amount of US $135 million, demanded by PJIA in their pleadings vindicates NAGICO’s position,” NAGICO Chief Executive Officer Dwayne Elgin said in an invited comment on the verdict.
NAGICO Chairman Imran McSood Amjad said the company will advise its reinsurers of the decision and commence collection after translation of the decision and adjusters report.
“We expect to pay the entire balance now due of $33.2 million between now and four to eight weeks as is the normal collection time for large facultative payments. We will continue to deal with the airport in a fair and reasonable manner, as we believe we have done before and after the court procedure initiated by the airport,” McSood said.
According to Elgin, the award by the judge represents just 43 per cent of the claim and NAGICO has taken some comfort in this.
“During the proceedings, the judge forced PJIA to quantify and substantiate their claim to the extent that PJIA and independent adjuster Axis York were able to agree on a number of previously disputed items in line with what the adjuster initially offered.
“Several of the larger and most significant amounts awarded by the judge have not yet been properly addressed by PJIA and NAGICO adjusters and which will be assessed by independent experts. NAGICO remains firm in its belief that PJIA have not fully substantiated or justified their claim which the court recognised,” Elgin added.
In a joint statement issued after the court case PJIA’s Acting Chief Executive Officer (CEO) Ravi Daryanani and Chief of Operations Officer (COO) Michel Hyman said they were “very satisfied” with the court’s judgment. “Not only has the court awarded a significant advance on the total damage suffered by PJIA, but as a result of these proceedings NAGICO was forced to finally review PJIA’s insurance claim, which it has consistently refused to do until legal proceedings were started.”
PJIA’s attorneys Eric de Vries and Michiel van den Brink of HBN Law explained in the airport’s statement on Monday that the court’s judgment is a preliminary decision.
“Summary proceedings like these are intended to provide interim relief on short notice. Given that nature, courts must be cautious with awarding monetary claims. Typically, a monetary claim is only allowed if there is no reasonable doubt that the claim would also be awarded in ordinary proceedings on the merits,” the lawyers said.
They pointed out that although a considerable amount has been awarded, this only represents part of the amount to which PJIA is entitled. “In view of the nature of the proceedings against NAGICO, the court has awarded only part of the amount that it expects NAGICO to be liable for,” they stated.
The PJIA managing board expects that NAGICO will handle the settlement of PJIA’s insurance claim more expeditiously from now on. They also expressed their expectation that the further settlement of the claim can be carried out in a more amicable atmosphere.
“Our loss experts and NAGICO’s loss adjuster have continued discussions on the settlement of PJIA’s insurance claim during the proceedings. We expect that PJIA’s claim will be settled amicably and hope that no further legal actions will be necessary. That would not only be in PJIA’s interest, but also that of St. Maarten,” according to the board.
The board thanked the airport staff for their “tireless work ethic” and for standing by management during this time “as the company returns to be the regional leader in the airport industry.”
In the meantime, Elgin said NAGICO will explore options available within the jurisprudence to ensure that it only pays what is legally due for the damage suffered by PJIA. “NAGICO has acted in good faith throughout the claims process and will continue to do the same with the expectation that the claim will be settled in a fair and reasonable manner,” he said.
Source: The Daily Herald https://www.thedailyherald.sx/islands/79113-nagico-says-verdict-vindicates-its-position-pjia-satisfied-with-ruling
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