Insurance sub-agent accuses Citadel Insurance of defamation

An insurance sub-agent yesterday called on Citadel Insurance not to approach Shield Services Limited's clients and claimed a notice published by Citadel in the newspapers was aimed at damaging Shield's reputation.

Mark Randon, in his personal capacity and on behalf of Shield Services Limited, filed a judicial protest in the Civil Court against Citadel Insurance plc holding it liable in damages.

Randon referred to a notice published in the local newspapers in terms of which Citadel Insurance broadcast the news that Shield Services Limited was no longer its sub-agent and that Randon was no longer authorised to act on behalf of Citadel Insurance.

He declared that although every principal or sub-agent to a contract was entitled to terminate commercial relations, such party could not use illicit means to try to attract the clients of another party.

Randon added that Citadel was not entitled to spread false and defamatory news with the purpose of casting a bad light on Shield Services and on him in his personal capacity.

Citadel was trying to give the impression that Shield Services and Randon had abused of some powers granted to them, but this was not the case.

Randon declared that Citadel Insurance was communicating with his clients and was giving them false and unfounded information with the scope of damaging both him and Shield Services on the local market.

This amounted to defamation and Randon reserved the right to take further action according to law.

Both Randon and Shield Services declared that they had always scrupulously observed the law and acted in the best interests of their clients.

In one year, Shield Services Limited had passed over Lm200,000 worth of work to Citadel Insurance and the latter company was not entitled to try to attract for itself Shield's portfolio of clients.

Randon claimed that this portfolio had been built up over many years in the sphere of insurance and that it was obvious that Citadel Insurance was trying to attract these clients by all means including the spreading of serious and false allegations.

Dr Stefan Camilleri signed the protest.