Global insurer Chubb has been sued over millions it allegedly owes embattled department store Myer.
Earlier this month, the struggling retailer filed a lawsuit against Chubb in the Supreme Court of Victoria for roughly 10% of its reported first-half adjusted net profit of $40m, plus interest on the $3.5m, bringing the amount being sought to $4m.
Myer alleged Chubb has liability for its collapsed warranty insurer, U-nited Warranties, under a “Premier INT Liability Package,” where it said Chubb had agreed to indemnify U-nited against losses and claims, The Sydney Morning Herald reported.
In Sept. 2011, Myer took out warranty-protection insurance through U-nited – a relationship cut short when the insurer ceased operations and was placed under members' voluntary liquidation on July 8, 2012, allegedly breaching its contract with Myer.
The case follows a trying year for Myer, which has been hit hard by poor trading conditions and was heavily criticised by Premier Investment's chairman Solomon Lew over its performance and board, SMH said.
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