Various Eateries Trading Ltd v Allianz Insurance PLC [2024] EWCA Civ 10 (16 January 2023)

Various Eateries Trading Ltd v Allianz Insurance PLC [2024] EWCA Civ 10 (16 January 2023)

The initial outbreak of COVID-19 in Wuhan, while a single occurrence, was too remote from the claimant's business interruption losses to be the relevant occurrence for aggregation under the policy. The relevant occurrences were the UK government actions (such as closure orders) that directly led to the losses. The judge's evaluative judgment on remoteness and aggregation was correct and should not be disturbed.

Citation
[2024] EWCA Civ 10
Parties
Respondent/claimant: Various Eateries Trading Limited; Appellant/defendant: Allianz Insurance PLC
Jurisdiction
England and Wales
Judgment Date
16 January 2023
Procedural Posture
Appeal (civil) / Court of Appeal Judgment on Appeal From High Court (commercial Court)
Outcome
Appeal dismissed; cross-appeal dismissed.
Legal Topics
Business Interruption Insurance, Policy Construction, Aggregation Clauses, COVID 19 Pandemic Losses, Remoteness of Loss, Causation in Insurance
Insurance Law Contract Law Commercial Law Business Interruption Insurance Policy Construction Aggregation Clauses COVID 19 Pandemic Losses Remoteness of Loss +1 more

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Parties

Various Eateries Trading Limited

Respondent/claimant

Allianz Insurance PLC

Appellant/defendant

Procedural Posture

Appeal (civil) / Court of Appeal Judgment on Appeal From High Court (commercial Court)

Legal Issues

  1. 1 Whether business interruption losses suffered by the claimant during the COVID-19 pandemic are subject to aggregation under the policy's 'single occurrence' clause.
  2. 2 Whether the initial outbreak of COVID-19 in Wuhan or subsequent government actions in the UK constitute the relevant 'single occurrence' for aggregation purposes.
  3. 3 Whether the losses are too remote from the initial outbreak to be aggregated under the policy.

Ratio Decidendi

The initial outbreak of COVID-19 in Wuhan, while a single occurrence, was too remote from the claimant's business interruption losses to be the relevant occurrence for aggregation under the policy. The relevant occurrences were the UK government actions (such as closure orders) that directly led to the losses. The judge's evaluative judgment on remoteness and aggregation was correct and should not be disturbed.

Court Disposition

Appeal dismissed; cross-appeal dismissed.

Orders

  • The initial outbreak in Wuhan is too remote to aggregate the claimant's losses under the policy.
  • The relevant occurrences for aggregation are the UK government actions (e.g., closure orders).