Chubb sued over struggling retailer's lost millions

The insurer allegedly owes the retailer $4m

Chubb sued over struggling retailer's lost millions

Insurance News

By Mina Martin

Global insurer Chubb has been sued over millions it allegedly owes embattled department store Myer.

Earlier this month, the struggling retailer filed a lawsuit against Chubb in the Supreme Court of Victoria for roughly 10% of its reported first-half adjusted net profit of $40m, plus interest on the $3.5m, bringing the amount being sought to $4m.

Myer alleged Chubb has liability for its collapsed warranty insurer, U-nited Warranties, under a “Premier INT Liability Package,” where it said Chubb had agreed to indemnify U-nited against losses and claims, The Sydney Morning Herald reported.

In Sept. 2011, Myer took out warranty-protection insurance through U-nited – a relationship cut short when the insurer ceased operations and was placed under members' voluntary liquidation on July 8, 2012, allegedly breaching its contract with Myer.

The case follows a trying year for Myer, which has been hit hard by poor trading conditions and was heavily criticised by Premier Investment's chairman Solomon Lew over its performance and board, SMH said.

 

 

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