In a final and precedent-setting decision, the Commercial Chamber (Third Division) of the Court of Cassation ruled in favor of the appellant, ordering an insurance company to pay compensation for substantial fire damage sustained by an insured warehouse. The incident, which occurred in 2012, resulted in severe losses to the warehouse and extended to adjacent industrial properties. After more than seven years of litigation, the Court of Cassation overturned the lower courts' rulings, delivering a decisive judgment in favor of the claimant.
The dispute originated from a claim filed by an industrial company against two insurance providers, seeking compensation under the applicable fire insurance policies. Both insurers denied liability, asserting that the fire fell outside the scope of their contractual coverage.
The claimant was represented by senior lawyer Dr. Fawaz Khaled Alkhateeb of Taher Group Law Firm Co. Dr. Alkhateeb successfully demonstrated the validity of the insurance coverage and rebutted the insurers' defenses by relying on the terms of the policy, official firefighting reports, and evidence of the claimant¡¯s full compliance with its contractual obligations, including premium payments.
In its reasoning, the Court emphasized that a subrogated guarantee claim cannot rely on factual assertions that contradict official records or diminish the evidentiary authority of properly issued insurance documentation. It further held that the appellate court's decision conflicted with established legal principles and failed to accord appropriate weight to the documentary evidence.
Accordingly, the Court admitted the appeal procedurally and substantively, overturned the appellate ruling in part, and ordered the second insurance company to pay compensation within the scope of the claim. The Court also awarded costs and attorney" fees in favor of the appellant.
Commenting on the ruling, Dr. Fawaz Khaled Alkhateeb stated: "This judgment represents a meaningful victory for the rule of law and for the rights of litigants who have waited years for justice. It signals a promising shift toward judicial efficiency and the expedited resolution of long-pending disputes, in alignment with the State of Kuwait¡¯s vision to strengthen the legal system and create an investment-friendly environment that ensures the protection of rights and enforcement of contractual obligations. "We believe this ruling will set an important precedent for insurance litigation and enhance trust in Kuwait's commercial and judicial frameworks," he added.
By Dr. Fawaz Alkhateeb
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