The Commerical Court is to hear test cases in October brought by a number of pubs affected by the Covid19 lockdown with over 1,200 pubs and restaurants having an interest in the outcome.
The cases involve the interpretation of business insurance policies and in particular cover for business interruption and consequential losses caused by the impact of the Covid19 pandemic. The insurer, FBD, it appears is happy for a test case to proceed so the question of liability can be determined with separate hearings or perhaps a form of alternative dispute resolution used to determine the level of damages in individual cases at a later date, should it be found liable.
To date, FBD has received over 700 claims from customers forced to temporarily close as a result of the Covid19 outbreak.
Interestingly, in a case brought before the courts in Paris last week, AXA has been ordered to pay compensation to a restaurant forced to temporarily close because of the Covid19 pandemic with the claimant awarded the equivalent of two months’ lost revenue. This ruling will be of particular interest to Irish pub and restaurant owners suffering enormous losses as a result of the closure of their business because of Covid19.
For those businesses affected by Covid19 and that may have business interruption cover, immediate legal advice should be sought to discuss your options and possible avenues of redress.
If you wish to discuss any matter please Contact Us for immediate and confidential advice.