Court: Compensa has to cover all the damage caused by the storm to Žemaitijos piens
The insurance company „Compensa Vienna Insurance Group“ has to cover the full amount of the damage incurred by one of the country's largest dairy processing groups, „Žemaitijos pienas“, due to the heavy rainfall in July 2021, which is EUR 303.99 thousand (excluding VAT).
On 10 April, the Court of Appeal rejected the appeal of „Compensos“ and upheld the decision of the Vilnius Regional Court of October last year ordering the insurance company to fully cover the damages suffered by „Žemaitijos Pienas“, with an additional award of €248.03 thousand.
„The Chamber of Judges agrees with the conclusion of the Court of First Instance that the repair of the roof of the building, only where it collapsed as a result of the torrential rain, was not possible for technological reasons, the Court of Appeal's ruling states.
According to the court, „Žemaitijos pienas“ rightly claimed an insurance benefit from „Compensos“ for the repair or reconstruction of the entire roof of the building.
According to „Žemaitijos pienas“, in the summer of 2021, the roof of one of the buildings belonging to the company and the structures supporting it were damaged, but the insurance company only covered the damages in the amount of 55.96 thousand euros, and denied the rest of the damages in the amount of „248.03 thousand euros.
„Compensa“ argued before the Court of Appeal that the rainfall was not a substantial factor in the collapse of the roof of the building, but „Žemaitijos Pienas“ argued that, even if the condition of the building was inadequate, it had been in that condition even before the conclusion of the insurance contract, and „Compensa“ had agreed to, and had offered, to insure the building itself.
In October last year, the Vilnius Regional Court also awarded „Žemaitijos pienai“ „Compensa“ an additional EUR 44.1 thousand of litigation costs and EUR 4.4 thousand of damage assessment costs, as well as 6 per cent procedural interest on the awarded amount from the opening of the case until the court's full judgment has been executed.
The decision of the Court of Appeal shall become final from the date of its adoption and may be appealed in cassation to the Supreme Court of Lithuania within a period of three months.
