An insurance firm is to seek High Court direction in settling a dispute over insurance claims relating to the fatalities in Creeslough, Co Donegal, three years ago.
An explosion at a filling station and adjoining apartment complex in the town on October 7th, 2022, claimed the lives of 10 people and left the complex severely damaged.
Following the incident, Vivo Shell Ltd, a company controlled by Danny Martin Lafferty and Annette Lafferty and the owner of the complex overall, claimed losses arising from the explosion with its insurer, Aviva Insurance Ireland Ltd.
The building had been insured by Vivo Shell for €1.7 million, less than the property damage losses incurred as a result of the explosion, according to court filings.
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A dispute arose after owners of individual apartments within the complex said they were entitled to a share of the payout of the claim regarding the building.
Vivo Shell appears to agree that the apartment owners are entitled to a share of this payout, but there is disagreement on how it should be divided, according to court filings.
It is understood that, under recent proposed distributions of the payout, apartment owners stand to receive significantly less than the market value or reinstatement cost of their properties.
Some apartment owners, represented by Damien Tansey Solicitors LLP, are also understood to be agreeable to the proposed distribution of the proceeds of the claim, but want to reserve their right to pursue Vivo Shell for the difference between the payout and value of their apartments.
According to court filings there is also disagreement between Vivo Shell and the apartment owners regarding the distribution of €65,000, the proceeds of a claim by Vivo Shell on the contents of the apartment complex.
Vivo Shell says the apartment owners are not entitled to payouts under this heading of the insurance policy, according to the documents.
Aviva has also sought direction from Vivo Shell and the apartment owners on how to distribute, or hold, a public liability sum of €6.5 million covered by the insurance policy.
According to court filings, no agreement has been reached on this.
Aviva is now asking the High Court to direct how to divide the total sum of the proceeds of the building and contents claims, and the public liability sum, amounting to €8.265 million. The matter is due to come before the High Court before the end of the month.
Gardaí and other agencies continue to investigate the cause of the Creeslough explosion.
Those who died in the incident were: Robert Garwe (50) and his daughter Shauna Flanagan Garwe (5); Catherine O’Donnell (39) and her son James Monaghan (13); James O’Flaherty (48); Jessica Gallagher (24); Martin McGill (49); Hugh Kelly (59); Martina Martin (49) and Leona Harper (14).
Several bereaved family members have initiated personal injury actions against various parties in the High Court arising from the explosion.
Donegal County Council had approved the proposal from Vivo Shell in February to redevelop a service station and shop at the site. This was appealed by several family members of those killed in the incident.
