Issue link: https://maltatoday.uberflip.com/i/1518324
12 maltatoday | SUNDAY • 31 MARCH 2024 LETTERS & LAW Letters to the Editor Law Report Qormi roundabout works welcome TRANSPORT Minister Chris Bonett's remarks that Infrastructure Malta will be carrying out minor interventions at the Tal-Imgħallaq roundabout in Qormi to improve traffic flow is more than welcome. The roundabout is not just a bottleneck but also a road safety hazard because of the number of roads that lead to it. Being a regular user of the Qormi to Luqa road I have often been blindsided by oncoming cars from the Qormi side of Mdina Road. The minister said the interventions will initially be minor ones similar to the hair- pin project on St Andrew's Road in Swieqi and promised a more extensive project, presumably involving some form of flyo- vers, in the long-term. While I understand that it makes no sense to have more than one major road project underway, I only hope that long- term does not mean the Qormi rounda- bout project is abandoned over time. D. Mizzi Żebbuġ Mission Fund helps us support poor families I wish to thank the Mission Fund and its benefactors for the €3,000 donation sent us to be able to help people who have no means to educate their children. After the war that took place in Ethio- pia and in the prevailing global circum- stances, we are experiencing exaggerated food inflation such as bread, flour from which injera (traditional flatbread) is done, milk and vegetables, not to men- tion meat and chicken, which normally costs more than €10. Wages, including those of teachers and nurses, are low. There are people who earn less than €100 per month and this has to suffice for rent, electricity, water, travelling and food. To beautify the capital city these days not only small houses are being pulled down but also shops and restaurants, and everything that comes in the way. Nobody is being compensated and as a result many people end up houseless and without work. Nobody in Malta can imagine what this feels like and this is why I ask you to con- tinue helping the Mission Fund so that we will be able to help these families in need. I thank you from the bottom of my heart. Sr Carmen Sammut St Joseph Convent Addis Ababa Ethiopia When will Malta make the grade GEORGIA is the latest small country to join a growing list of countries that have managed to qualify for major in- ternational football tournaments after beating Greece on penalties in a playoff match for the Euro 2024 finals to be held in Germany. Iceland, Albania and Finland are other countries that have over the past decade made it to either the Euros or the World Cup, or both. These are all teams that Malta could beat. Why can't we translate positive results obtained in friendly matches such as the recent draws against Slove- nia and Belarus into something more meaningful in competitive tourna- ments? Indeed, when will Malta's name ever be in the list of small countries that have qualified? Will us supporters ever be in a po- sition to go carcading because Malta would have qualified? Martin Vella Msida SUBROGATION of rights takes place when an injured party is paid by the insurance company and that insurance company takes over the rights to sue the party responsible for the damages. This was held in a judgment delivered by Mr Justice Francesco Depasquale on 26 March 2024. The case was GasaMamo Insurance Limited vs Holden Develop- ment Company Limited et. GasanMamo explained in its sworn application that the Defendant Com- pany intended to carry out works in its hotel, Ramla Bay Hotel. Holden issued an insurance policy with Elmo Insur- ance Limited. It covered material dam- age and had an excess of 10% of the full claim. One of the contractors on site was Mekkanika Limited which had to install 10 lifts in the hotel. Mekkanika was covered with the insurance policy issued by Elmo, but also by another in- surance policy issued by GasanMamo. The excess was €582. There was an agreement in September 2015 where Holden had to provide storage to Me- kkanika for the lifts and their equip- ment. The area was identified by Hold- en and the lifts were placed there. On 8 March 2017 there was a storm and large amount of sea water entered the area where the lifts were being kept. They were all damaged and totally destroyed since they were submerged in the water. Mekkanika suffered €228,322 in damages, which was cov- ered by the two insurance policies. El- mo compensated Mekkanika €205,490. Then Elmo turned on GasanMamo to pay up its share of the damages. Both insurance companies agreed that Elmo would pay €108,298 and GasaMamo would fork out €97,192. GasanMamo is claiming that Holden was bound to provide adequate space to store the lifts and therefore, it was ultimately re- sponsible for the damage. GasanMamo asked the court to hold Holden respon- sible for the damage and ask it to pay GasanMamo €120,024. Holden filed its statement of defence in which it held that the Plaintiff com- pany must show that it has a juridical interest in the action. The Defendant company quoted from the agreement where it stated: "If for any reason be- yond the control of the contractor the site is not secured enough to store the elevators, the client should seek an al- ternative site. Should the client fail to provide an adequate storage place for the lift equipment, this will be stored by the contractor and charged to the client's account by the going storage rate. A double handling charge will be also levied." The Court then went through the ev- idence which showed that GasanMa- mo had received a subrogation of right from Mekkanika in order for it to pur- sue the claim. As to whether the Plaintiff Company has a juridical interest in the case, the court analysed the evidence produced. It was proved that between 7 and 8 March 2017 there was a severe storm. The storm caused damage, includ- ing the collapse of the Azure Window in Dwejra. Ramla Bay Hotel is on the coast and as a consequence it suffered damages when there are rough seas. It also resulted that everyone involved including Holden considered that the lift equipment was safe and secure. The equipment did not suffer any damage for a number of weeks. According to a surveyor's report where the equipment was held there was a wall purposely to keep the sea water out. However, be- cause of the construction works, parts were removed. As a result, the area where the equipment was being kept was in danger of being flooded. The Defendant Company cannot argue that the fault was due to the storm, because although it was a strong storm, such storms hit Malta three or four times a year. The flooding took place because the barrier was removed. It was for this reason that Holden was responsible for what happened to the lift equipment. Elmo Insurance argued that Mekka- nika gave it a discharge and subroga- tion form and therefore, it had a right to file the action and not GasanMa- mo. Makkinika Limited was refunded €228,322 where €205,490 was paid by Elmo, while €22,932 was paid by Gas- anMamo. In turn GasanMamo then re- funded Elmo Insurance €97,192. This means that in fact Elmo had paid Me- kkanika €108,298. GasanMamo paid €120,024. The Court then held that both GasanMamo and Elmo had a right to be refunded. The legal principle is that once the insurance pays a policy, then it takes over the rights of the party which suffered the damages. Once El- mo Insurance agreed to divide the pay- ment of damages, then GasanMamo had a right to be refunded for its part of the payment. The Court then moved to order Hold- en to pay GasanMamo €120,024. Once an insurance pays damages, it has a right to be refunded from the responsible party LAW REPORT MALCOLM MIFSUD Mifsud & Mifsud Advocates