In Brief
A construction company suffered loss when a partially built bridge collapsed. The insurance company repudiated the claim in full, stating the damage resulted from faulty design and poor execution, not covered under the policy. The contractor later invoked the policy's arbitration clause, but the insurer argued the clause applied only to disputes over quantum when liability was admitted, not to disputes over whether it was liable at all. The Supreme Court upheld this argument, holding that a conditional arbitration clause that expressly states it does not apply when the insurer disputes liability cannot be invoked after total repudiation. The contractor's proper remedy is a civil suit, not arbitration.
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