Recently, owners of the Royal Dane Mall in the US Virgin Islands filed a lawsuit against their insurer, Lloyds of London, which stems from a fire on Independence Day two years ago that caused significant damage to the historic market.
The Royal Dane Mall, located in one of the oldest buildings in St. Thomas, broke out in flames on July 4, 2019. Despite the efforts of eighteen firefighters, two of the malls suffered three buildings catastrophic structural damage as a result of the huge flame. The owners of Royal Dane Mall claim that they have not yet received any payment under their $ 5 million all-risk policy, which precludes their ability to begin repairs. For this purpose, the mall remains uninhabitable and unsuitable for generating income.
Royal Dane claimed that Lloyds denied more than $ 6 million in claims and demanded investigative reports not owned by Royal Dane. In its federal lawsuit on Friday, Royal Dane claimed that Lloyd's actions and inaction were outrageous and done with evil motives and / or with ruthless indifference to Royal Dane's rights as a policyholder. who claimed that they were delayed by Royal Danes 'claim for damages and believed that Royal Danes' claims were more than four times their insured value.
According to the lawsuit, the Royal Danes' owners had their own assessment of the fire damage, but were informed there was no coverage as Royal Dane could not provide investigation reports from the Virgin Islands Fire Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Despite several requests, Royal Dane claimed that they never received the reports and pointed out that their policy does not require investigative reports.
Rather, Royal Dane believes that Lloyd's real purpose in delaying a decision on coverage was to allow their right to sue to cease, and to force Royal Dane to abandon his claims.
For more information and case updates, see SBP Royal Dane Mall, LLC v. Certain Underwriters at Lloyds of London Case 3: 21