Sun Alliance loses subsidence claim

THE APPEAL Court yesterday overturned a judgment that would have entitled Sun Alliance to recover pounds 102,813 paid to a Brighton businessman who had made a subsidence claim against the insurer.

Paul Diggens took Sun Alliance to court in 1992 claiming pounds 55,065 on top of the sum paid. He lost, and the court found that Mr Diggens had fraudulently intended to include extra work on his luxury basement in the claim.

The court said Sun Alliance was entitled to recover the money it had already paid. It granted an injunction to prevent Mr Diggens and his wife disposing of assets.

Mr Diggens, who said his marriage had broken up under the strain, appealed against the finding of fraud. His appeal was upheld yesterday.

Mike Jones, head of corporate affairs at Sun Alliance, said: 'This is an exceptional case in terms both of the amount and the circumstances in which the original subsidence claim was made. Not many houses have an underground squash court, bar, jacuzzi and changing facilities.' He said the company was disappointed by the judgment and may appeal to the House of Lords.

Each party is to pay its own costs, and the court adjourned to consider how these would be allocated. The total bill could be up to pounds 500,000.