The Court of Appeal has found in favour of Hugh James’ client, Why Not Bar & Lounge Ltd, in an historic Covid-19 business interruption test case, as listed in the Lawyers ‘Top 10 Appeals of 2024’. The victory is incredibly important for hospitality businesses in Wales and throughout the United Kingdom who suffered devastating losses as a result of national lockdowns imposed by the UK Government during the Covid-19 pandemic.
Hugh James represented ‘Why Not Bar’ alongside five other ‘at the premise’ test cases on appeal from the High Court. Insurers appealed on the issues of causation, knowledge and the relevance of the requirement for closure of the premises to be on the approval or advice of a medical officer of health.
The Court of Appeal handed down judgment in favour of policyholders and dismissed insurers’ appeals. Lord Justices Males, Popplewell and Lady Justice Andrews upheld the decision that insurance clauses covering the occurrence or manifestation of Covid-19 ‘at the premise’ do in principle provide cover to affected businesses.
Erich Kurtz, Senior Associate at Hugh James acted for ‘Why Not Bar’ who trade as Michelin star restaurant SY23, y Sgwar and the Courtyard in Aberystwyth. He remarked:
“The Court of Appeal judgment is another crucial step in providing vital legal certainty to thousands of businesses who have ‘at the premise’ insurance policies. Hugh James hopes that insurers will now engage constructively with policyholders and no longer delay assessment and payment of compensation to those affected.”
Mark and Rhian Phillips, owners of Why Not Bar commented:
“This judgment is a tremendous victory, after four and a half years of continued denials from our insurers that they should meet our losses suffered throughout the Covid-19 pandemic.
“This is not just a win for our business, but another step forward in providing a lifeline for all those businesses affected.”
Mark & Rhian added:
“The emotional strain, psychological toll and financial distress caused by our insurers ongoing refusal to pay compensation cannot be overstated. We have lost loved ones, struggled financially and my wife has suffered significant anxiety and distress because of this ordeal.
“We cannot thank the unwavering support we received from our family, friends and the professionalism of Hugh James. We are especially grateful to Erich Kurtz for his dedication and expertise throughout this claim.”
