ASBESTOS VICTIMS WIDOW IN BATTLE FOR JUSTICE

In January 2008 our client Mrs Daphne Reay was awarded a six figure sum in compensation for her husband’s death due to mesothelioma following a 5 year battle to prove the identity of the insurance company responsible .

Keith Reay contracted mesothelioma, an asbestos related cancer, in late 2002 and contacted Marrons solicitors immediately to pursue a claim for compensation. He had been employed by the same company since shortly after he left school in 1967 until 1984.He was exposed to asbestos in the course of that employment as a plumber/heating engineer. The company, J H Newman & Sons (Hexham) Ltd, a building company based in Hexham went out of business in 1993.

When Mr Reay contracted his cancer J H Newmans had been out of business for almost 10 years and all documents which might have identified the employer`s liability insurer covering the period when he was exposed to asbestos and, therefore responsible to pay his compensation, had been destroyed. It was left to us to carry out investigations to confirm the Insurer`s identity. The usual channels including enquiries of the company’s liquidator, it’s insurance broker and the Association of British Insurers failed to identify the responsible Insurer. As a result Mr Reay died not knowing if his wife would be provided for. He expressed the wish the claim should continue so that any former work colleagues who might develop the same condition should not go uncompensated.

After Mr Reay`s death in August 2003 some evidence emerged from a former employee of J H Newmans and from two of the company’s former Directors that the Company had placed all it’s insurance business with one insurer Guardian & Royal Exchange (now AXA), which company had an office in Hexham at the time.

AXA were approached by Marrons as early as July 2003 to investigate their records and confirm their cover for the claim. They were told they had been identified by a former Company’s Director and were invited to contact him for confirmation. Despite this the insurers insisted that without documentation, or a policy number, they were unable to consider the claim.

As a result Marrons had to spend considerable time and money searching for documentation and further evidence. This included enquiries of the local Council and many other companies with whom J H Newmans had carried out work. Insurance archaeologists were instructed but after a year investigating also failed to obtain documentary evidence or even a policy number.

Mrs Reay and her solicitors were left with no option but to fight the claim on the basis of written statements by then obtained from J H Newman`s former Directors. It also transpired that one of the former Directors was able to name two former employees of GRE/AXA with whom they had done business. Eventually AXAs former employees were traced and also gave very clear evidence that Newmans had indeed been covered for this claim by their employers.

The evidence from all the witnesses was presented to AXA but despite this they continued to deny involvement and refused to pay the claim. Mrs Reay had no choice but to pursue protracted and expensive legal proceedings in order to prove their responsibility.

Shortly before the trial date fixed for 10th January 2008 solicitors instructed by AXA intervened on the basis that they had, at last, found a cover note for 1984, the last year of Mr Reay’s employment. However, they attempted to argue about the value of the claim whilst still refusing to confirm that they were the company’s Insurers at the relevant time. AXA made a settlement offer the day before trial which Mrs Reay decided to accept. AXA will now pay a substantial six figure sum to Mrs Reay whilst still failing to confirm insurance cover for J H Newmans and despite written evidence from two of their own former employees.

Mrs Reay said she is extremely satisfied and relieved that a long Court battle is now at an end and expressed her gratitude to the former Directors of J H Newmans and AXAs former employees without whom she could not have succeeded in her long battle for compensation.

David Thompson of Marrons solicitors who acted for Mrs Reay said this case illustrates in a dramatic fashion one of many difficulties a victim of asbestos related disease may have to overcome to secure compensation. AXA denied responsibility and attempted to avoid its liabilities until the last possible moment. It is not the first time this insurer has denied cover in the face of evidence to the contrary. Even if they had lost or destroyed their records (which, in itself, is inexcusable) they should have accepted responsibility years ago when evidence was put to them from J H Newmans former Directors. It is quite unacceptable that an insurer should take premiums from a company, lose or destroy it`s own records and then attempt to avoid legal obligations in the face of evidence from even its own former employees. This case and others like it highlight the failure of many insurers to preserve adequate records. No central database of employers liability policies exists and often asbestos victims go uncompensated because there is no evidence of who the relevant Insurer was at the time of exposure to asbestos. Mrs Reay was very fortunate in this case that former Directors of J H Newmans and employees of AXA were able and willing to give evidence which ultimately resulted in Mrs Reay achieving a successful outcome though clearly after years of worry and financial hardship. Very substantial delay and cost could have been avoided had the insurance company dealt with this claim as they should when the evidence was first presented to them. When Insurers do confirm cover promptly these sort of claims can normally be dealt with within 6 to 12 months. Mrs Reay had to wait over 5 years.