Transport dept, Transnet and City sued for R339m over flood damages

Insurer brings court action over flooding in Prospecton

- THAMI MAGUBANE

THE KwaZulu-Natal Transport department, Transnet and the eThekwini Municipality are being sued for more than R339 million due to the deadly floods in 2022 that caused extensive destruction to a business premises in Durban.

The three entities have been named as defendants in a lawsuit filed by the insurer of Caxton and CTP Publishers and Printers Limited (Caxton), which suffered significant damage at its Prospecton premises during the floods.

The lawsuit, a subrogated recovery action, where the insurer steps into the shoes of the insured and directs the litigation, has been filed in the Durban High Court under the name of Caxton on behalf of the insurer.

Several companies in the southern part of Durban experienced extensive damage during the floods, prompting their insurers to take legal action to recover losses incurred as a result of the flooding.

This lawsuit follows a separate R6.5 billion claim filed by Tokio Marine and Nichido Fire Insurance Co. Ltd, the insurers of Toyota South Africa Motors, against the same three entities.

Craig Woolley, a director at Norton Rose Fulbright, representing the plaintiff, stated, “It is correct that there is a summons on behalf of the publishing company, a subrogated recovery action.”

A representative of Caxton confirmed that they are aware of the subrogated recovery action being instituted by the insurer.