Compensation for injured Emirates Palace guest cut in half by court


Haneen Dajani
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ABU DHABI // A woman who claimed to have suffered epileptic seizures after a wardrobe panel fell on her head at a luxury hotel was treated for the condition before the accident, an appeals court has heard.

The Civic Appeals Court ruled to halve the compensation to be paid to British Dubai resident Natalie Creane to Dh100,000.

Ms Creane, from Essex, sued the hotel, its management company and the insurer for Dh70 million, saying the wooden rack in the wardrobe had been improperly installed.

During her stay at the Emirates Palace hotel in July 2008, she was arranging her shoes at the bottom of the wardrobe when a rack, which weighed 2.2 kilograms, fell on her head.

She claimed the accident caused brain damage resulting in epileptic seizures and fainting.

Ms Creane also claimed that she lost her job as a result of her condition and suffered major physical, emotional and psychological pain, and needed constant medical treatment.

But it was proved to the court that there was no link between the injury and her seizures.

The court’s medical committee requested her health file from the UK to check her background, saying the probability of her suffering epileptic seizures from the accident was not more than 2 per cent.

She did not provide the file so the court issued an order to include it in the lawsuit.

It showed that before the accident she was being treated for the condition she claimed to have developed after the rack fell on her.

The court decided that the rack did fall on her head, despite an engineering committee’s report saying it was intentionally dropped, and that it did result in a minor injury that caused her pain and absence from work.

The court also said that she exaggerated the consequences of the accident, because she managed to find a job in another company after the incident and got married.

The hearings were attended by members of the “Justice for Natalie” support group, formed through social media.

hdajani@thenational.ae

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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