A marketing firm was sued for misleading and deceptive conduct by one of the Insured's competing restaurant for advertising that the Insured restaurant employed a celebrity chef. This particular chef was employed by the rival restaurant. The marketing firm then joined the Director of the Insured hotel to the proceedings alleging that they provided a verbal and written statement that this celebrity chef was employed in their restaurant.
The Policy was triggered and indemnity was extended to the Insured. The claim was ultimately settled out of court for the amount of $230,000 with the Insured agreeing to contribute $160,000 to the settlement of the claim. Overall, costs of approximately $65,000 were incurred and were also covered under the Policy.
A business and development manager in a National office was terminated by the Insured on the basis that his position was made redundant. The ex-employee issued proceedings in the Human Rights Commission alleging that he was wrongfully terminated on the basis that someone else was promoted into his position and that his former role was not redundant.
The ex employee was able to prove his case and accordingly, the Commission determined that there was wrongful termination and ordered the employer to reinstate the employee and pay him $50,000 in damages and costs.
Over a period of 2 years, an employee of the Insured construction company in collusion with his wife and son were stealing building supplies to build homes for other clients. The employee and his wife had a marriage break up which resulted in her coming clean to the police. The employee was arrested and charged with the theft of $550,000 worth of building supplies.
The Insured made a fidelity claim on their policy and it was determined that the Policy was triggered and indemnity was extended to the Insured. The Insured was able to prove their loss and make a claim for the amount of $680,000 following the report of the loss assessor who assisted the Insured to quantify their loss.
A mining engineer and geotechnical specialist, contracted by the insured mining company were inspecting a tunnel for the purposes of deciding how to support the excavations and what type of equipment would be best suited to cutting and drilling the rock mass. During the inspection, they were severely injured when part of the tunnel collapsed on them. The mining contractor was left paraplegic and the geotechnical was left with deep lacerations on his right thigh along with a punctured lung and head trauma. The insured company was subject to a full Occupational Health and Safety investigation and prosecution.
The company vigorously denied and successfully defended all allegations. Despite their attempt, the company was fined $450,000 and incurred close to $100,000 in legal defence costs.
The director and company were charged with four offences under the Environment Protection Act. These were indictable offences and each charge carried a potential maximum fine of $280,000. The EPA alleged that the electrician (employed by the company) dumped hazardous waste into a nearby vacant lot which was not determined to be a legal dumping site.
The policy was triggered and following a 3 day hearing, the director and company were found liable and were fined $120,000. Overall defence costs of $60,000 were incurred over the duration of the investigation and prosecution.