Supreme Court ruling on protracted insurance dispute
If, the leading insurance company in the Nordic region, has won a protracted dispute with the city of Gothenburg over a fire at the Torslanda School.
The fire, which caused damage in the order of SEK 100 million, started when a parked car was set on fire and moved closer to the building as a result of a short circuit in the electrical system. The Supreme Court found that the car was not in traffic, as required under the third party injury policy issued by If, when the fire spread to the building.
Baker McKenzie lawyers Stefan Bessman and Christofer Isaksson were counsel for If.
The Supreme Court ruling is interesting for the insurance industry’s future assessment of the term road traffic damage. Compulsory third party liability insurance is not intended to cover such an event as this, says Stefan Bessman, lawyer at Baker McKenzie.