REPORT

Claim file number: RCL/000054/2014/CJ/B

Policy: RC 66100
Court File number: 11317/118/2009 at the Constanta Court of Appeal (stage:
appeal)
Respondent Claimant: Cardinal Motors S.R.L.
Appellant insured: SOCOTEC INTERNATIONAL ROMANIA S.R.L.

Through the civil sentence no. 2999/03.11.2014, pronounced by the

Constanta Court, the court has admitted the court action of the claimant
Cardinal Motors against the insured at Groupama - Socotec International,
which it has obligated to the payment of the respective amounts:
-

336.120 EURO including VAT in the equivalent of lei at the National

Bank of Romania Court rate from the date of the payment, representing
the actual loss

318.818 lei representing the legal interest for the amount of 336.120
euro, at 31.12.2012, and in continuation until the date of the actual
payment

200.000 euro in the equivalent of lei at the National Bank of Romania

Court rate from the date of the payment representing loss of earnings

9.093,96 lei representing legal fees: stamp duty and experts fee.

For the total: 536.120 EURO + 327.911,96 lei, plus legal interest until the
actual payment. Approximately: 610.000 EURO
The court has mentioned the fact that our insured is at fault because he did
not accurately fulfill his obligations, obligations he assumed through the contract
for assistance, technical control and site supervising he had with Cardinal Motors.

As a result of the initial court decision, the provision ( or reserve ) amount of

324.120 EURO was set on the claim file RCL/0000054/2014/CJ/B.
The provision consists of:
-

336.120 euro 20.000 euro the deductible established in the insurance

contract + 6.000 euro legal fees from the initial court decision + 2000
euro legal fees estimated with the appeal

According to the insurance contract conditions, Groupama can be forced to

reimburse the amounts that our insured must pay to its clients
due to the breach of the obligations he has as an assistant architect / site
supervisor, as well as the legal fees of the insured and of the claimant. Also, the
conditions state that any reimbursement claim appeared as a result of the loss
of earnings, of profit, lack of performance of the product that was an issue of
the contract is excluded. Also, the insurer cannot pay any deductibles
foreseen in the contract (in this case 20.000 euro per event). Therefore, our
company cannot be forced to pay the amount of 200.000 euro and the 20.000 euro
representing the deductible.
Regarding the legal interest, the insurance conditions do not clearly specify
their exclusion. In the insurance conditions there are excluded from payment only
the fines, penalties and compensatory payments as well as any reimbursement
resulted from the multiplication of the compensatory claims.
At present, the insured Socotec is being executed by Cardinal Motors for
the entire amount stated in the initial court decision. Also, the bailiff has sent to
Groupama an enforcement decision preventing our company from paying any
amounts directly to the insured.
Starting with the month of December 2014, our company has been
discussing and negotiating with our insured the amounts to which he has been
obligated to pay. In order to help it and also to get a suspension of any possible
execution, our company had granted, on the basis of an agreement, the amount of
150.000 lei representing the collateral in the court file. The payment of the amount

was exclusively made in order to facilitate Socotecs legal position in the stage of
appeal.
During the first negotiation with Socotec and Cardinal Motors from
22.04.2015, Cardinals request was that of obtaining the 75% out of the 660.000
euro, meaning 495.000 euro.
In the 28.04.2015, there was another meeting in order to negotiate again
with Cardinal Motors and Socotec, and during this particular meeting, Cardinals
request was that of 330.000 euro.
Resuming the amount to which Groupama could be forced to reimburse, I
underline:
-

316.120 euro (consisting of 336.120 euro 20.000 euro deductible

foreseen in the policy)

318.818 lei the legal interest for the amount of 336.120 euro, at
31.12.2012, and in continuation until the date of the actual payment

9.093,96 lei legal fees from the initial court decision

15.459 lei stamp duty in the appeal stage

15.459 lei stamp duty in the final stage of the court

10.000 euro lawyers fees, estimated for both parties

TOTAL: approximately 406.000 euro

In order to avoid further expenses generated from the appeal, final stage of
the court and enforcement of the decision, I propose closing an agreement of
reimbursement up to 300.000 EURO, including the 150.000 lei already paid as
collateral in the court file.
29.04.2015
Flaviu Bodea