The phantom menace. Claims in the modern supply chain CILA masterclass. Agenda. Introduction and tonight’s case study The investigation - Jonathan Clark The business interruption - Harry Roberts Legal issues - Mike Wells (Kennedys). The case study and investigation. Jonathan Clark
Claims in the modern supply chain
The phantom menace
It all changes
Bits n pieces
Kettleco’s insurers loss adjuster calls to investigate
“The confidence of the customer is a critical element in mitigating the loss and the “but for” argument needs to be anticipated and pre-empted”
“[Plasticity] shall at all times fully indemnify [Kettleco] against any action, claim, demand, cost, charges, losses or expenses caused to Kettleco, or for which [Kettleco] may be liable to third parties, due to defects in the workmanship or quality of the Goods, together with any claims in respect of death or injury where such death or injury arises out of the performance of the Contract and also any consequential loss or damage sustained by Kettleco or for which Kettleco may be liable as a result of the failure of Plasticity to supply Goods in accordance with the Contract. Plasticity shall maintain policies of insurance in respect of its liability under the Contract and shall on reasonable notice produce copies of the policies to Kettleco or its authorised agents together with any other information regarding such insurances reasonably requested”.
“[Kettleco] shall have the right by reasonable notice to [Plasticity] to change the nature of any goods or services covered by this contract …
If the performance of work under this contact is cancelled in whole or in part by [Kettleco] by notice in writing to [Plasticity], [Kettleco] shall pay [Plasticity] for the performance of work carried out under this contract up to the time of such termination”.
“The performance of all contracts is subject to variation or cancellation by [Kettleco] owing to any act of God, War, strikes, lockouts, fire, flood, drought, tempest, or any other cause beyond the control of [Kettleco] or owing to any inability by [Kettleco] to procure materials or articles required for the performance of the contract and [Kettleco] shall not be held responsible for any inability to deliver caused by any such contingency”.
All patterns, dyes, moulds, tooling, drawings or materials supplied by Kettleco (or prepared or obtained by [Plasticity]) shall be and remain the sole property of Kettleco. [Plasticity] shall maintain all such materials in good order and condition and insure them against all risks whilst in its custody. On completion of the contract (or otherwise as directed by Kettleco), Plasticity shall return them to Kettleco in good order and condition, subject to fair wear and tear. Should Plasticity fail so to return them, Kettleco may either withhold payment until they are so returned or withhold such part of the payment due as may be required to replace them or to restore them to good order and condition, whichever may be the less expensive. Plasticity shall not copy or use such materials nor authorise nor knowingly permit them to be copied or used by anyone else for, or in connection with, any purpose other than the supply of goods to Kettleco”.
1. The event which leads inevitably(or put another way with reasonablecertainty to the loss).
2.If the loss was the inevitable result of aperil then the full extent of that loss willbe recoverable and
3.In the absence of an applicable exception, in the event that the loss is not inevitable but was nonetheless not unlikely to result or put another way was the natural consequence itis likely to be covered.
“Provided that at the time of the happening of the loss, destruction or damage there shall be in force an insurance covering the interest of the Insured in the property at the Premises against such loss, destruction or damage and that payment shall have been made or liability admitted therefore”.
“Plasticity shall maintain policies of insurance in respect of its liability under the Contract and shall upon reasonable notice produce copies of the policies to Kettleco or its authorised agents together with any other information regarding such insurances reasonably requested”.