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Nove Represents If P&C Insurance in Dispute with Skanska

Nove Represents If P&C Insurance in Dispute with Skanska

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Nove has successfully represented If P&C Insurance in a dispute with policyholder and contractor Skanska involving Skanska's claims for professional liability cover.

According to Nove, "the dispute started from a 'yellow FIDIC' based design-and-construction contract for the reconstruction of a wastewater treatment plant of a city. The dispute focused on a division of liability between different subcontractors for defects of a tank .... The shortcomings were detected already in ground investigations, project management as well in geotechnical design and construction works. Therefore the question of applicability of professional liability cover to this complex bundle of shortcomings was raised. In the case courts handled the risks which may arise due to the nature of construction-and-project management contracts, which contain grounds for conflict of interests. Courts held that insurers may include industry-specific exclusions to their standard terms of professional liability products. The Supreme Court agreed with lower courts in its judgment."

The Nove team was led by Partner Andrus Kattel, assisted by fellow Partner Kristjan Tamm.