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There was a power failure in a sports ground, where Brunel’s client was the principal contractor responsible for the design of the circuit. This resulted in a power outage during a game with scoreboards not working and lost food/beverage revenue. The client alleged that the insured were contractually responsible to indemnify them for the losses incurred.

The alleged losses amounted to a total of circa £35,000. However, the insured managed to settle the matter for less than half of this amount – £11,000 – but without the insurers’ involvement.

The insurers did not want to pay the claim due to breach of conditions precedent in the policy regarding the unilateral action taken by the client. The client had expected this outcome when they made the decision to settle the claim themselves, but considered that there were overwhelming commercial and reputational considerations involved (such that it was worth the £11,000).

We did not think this was the right outcome and convinced the client not to drop the matter. We argued the point with the insurers, supported with additional information from the client, and a proper understanding of the contractual and wider commercial context of the issue.

The insurers reimbursed the insured for the settlement amount agreed. The client has thanked Brunel for our help in bringing this matter to an unexpected and successful conclusion.

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