Forensic tests find gas in two debris samples
Forensic tests have found evidence of gasoline in two of six debris samples from the Park Hotel fire of May 6, 2000. The six samples were sent for testing at the Cayman Islands Forensic Science Laboratory at the Cayman Islands Hospital, Grand Cayman, and four of the samples were found not to have any ignitable liquid residues. Four of the co-insurers in the Park Hotel insurance policy have held out settling their obligations to the Kissoon Group of Companies, which owned the Park Hotel, pending the testing of the debris. The Kissoon Group has filed two motions in the High Court challenging the non-payment by the four companies and alleging a conspiracy on the part of the four: the Colonial Life Insurance Company (CLICO); Hand-in-Hand Mutual Fire Insurance Company Ltd, North American Fire and General Insurance Company Ltd and the Guyana Cooperative Insurance Service Inc. Almost 50% of $367 million is outstanding in the settlement being claimed by the Kissoon Group. In an affidavit in response to the suit filed by Kissoon, the Hand-in-Hand Mutual Fire Insurance Company denied the allegations and asked the court to find that it was not under any obligation to settle the claim by the Kissoon Group because the firm had failed to disclose in its application for insurance coverage two fires in 1999. The company is also asking the court to dismiss/strike off the writ as it is contrary to the rules of the court because it was improperly filed. General Manager of Hand-in-Hand, Keith Evelyn, denied in a sworn affidavit that his company ever refused to pay the sum alleged by the plaintiff. Rather, he said his company was entitled to be satisfied that the terms of the policy had been complied with by the plaintiff and the loss properly proved to its satisfaction. The Kissoon Group, he asserted, had failed to prove the alleged loss to its satisfaction. Evelyn also denied that his company has ever agreed to accept the findings of the insurance adjusters, adding that it was not obliged to accept the findings without question. He noted that the adjusters were hired as fiduciaries to the insurance companies and the plaintiff should not have been privy to the contract of services. Evelyn said the Kissoon Group failed to make material disclosure to effect an insurance policy with his firm. He said John Yong, assistant manager of New Thriving Restaurant, which was located at the Park Hotel, disclosed that during 1999 there were two fires at the premises. He said that the Kissoon Group never reported the fires to his company prior to the effecting of the insurance policy and they were not disclosed in the proposal by the group for insurance coverage. "...By virtue of [the above] the plaintiffs are guilty of material non disclosure which entitles [Hand-in-Hand] to avoid the said policy of insurance and [Hand-in-Hand] will counterclaim herein for a declaration that they are entitled to avoid the said policy for the reasons aforesaid and are not liable to the plaintiffs on the said policy of insurance". Hand-in-Hand is also arguing that it lost the insurable interest in the Kissoon Group before the fire because without its sanction, the group on May 5, entered into an agreement with the proprietors of the New Thriving Restaurant to lease the said hotel to it. He cited Section Eight of the insurance policy which stipulates the conditions under which the insurance ceases to attach to the property unless the insured had obtained the sanctions of the insurers signified by endorsement of the policy. These include if the business is changed; if property insured is removed from the building; and if the interest in the property insured passed from the insured other than by will or operation of law.
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