Various Eateries Trading Ltd v Allianz Insurance Plc [2022] EWHC 2549 (Comm) (17 October 2022)

Various Eateries Trading Ltd v Allianz Insurance Plc [2022] EWHC 2549 (Comm) (17 October 2022)

The Court held that each case of COVID-19 in the vicinity constituted a separate Covered Event under the Disease Clause, and that the Indemnity Period begins with the interruption or interference with business, not the occurrence of the Covered Event. Losses after the Period of Insurance are only recoverable if proximately caused by Covered Events within the Period of Insurance. The applicable limits of liability are those specified for each clause, not the higher 'Total Value' figures. Aggregation of losses depends on the specific connection to a single occurrence as defined in the policy.

Citation
[2022] EWHC 2549 (Comm)
Parties
Claimant: Various Eateries Trading Limited; Defendant: Allianz Insurance PLC
Jurisdiction
England and Wales
Judgment Date
17 October 2022
Procedural Posture
Commercial Insurance Claim (business Interruption) / Judgment on Preliminary Issues
Outcome
Preliminary issues determined in favour of both parties in part; detailed findings on policy construction, causation, limits, and aggregation; further submissions invited on certain factual applications.
Legal Topics
Business Interruption Insurance, Policy Interpretation, COVID 19 Pandemic Losses, Aggregation of Claims, Causation, Limits of Liability
Insurance Law Contract Law Business Interruption Insurance Policy Interpretation COVID 19 Pandemic Losses Aggregation of Claims Causation Limits of Liability

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Parties

Various Eateries Trading Limited

Claimant

Allianz Insurance PLC

Defendant

Procedural Posture

Commercial Insurance Claim (business Interruption) / Judgment on Preliminary Issues

Legal Issues

  1. 1 What constitutes a 'Covered Event' under the Disease, Prevention of Access, and Enforced Closure Clauses?
  2. 2 How is the Indemnity Period to be calculated and when does it begin?
  3. 3 Are losses after the Period of Insurance but within the Maximum Indemnity Period recoverable?

Ratio Decidendi

The Court held that each case of COVID-19 in the vicinity constituted a separate Covered Event under the Disease Clause, and that the Indemnity Period begins with the interruption or interference with business, not the occurrence of the Covered Event. Losses after the Period of Insurance are only recoverable if proximately caused by Covered Events within the Period of Insurance. The applicable limits of liability are those specified for each clause, not the higher 'Total Value' figures. Aggregation of losses depends on the specific connection to a single occurrence as defined in the policy.

Court Disposition

Preliminary issues determined in favour of both parties in part; detailed findings on policy construction, causation, limits, and aggregation; further submissions invited on certain factual applications.

Orders

  • Declaration as to the meaning of 'Covered Event' under each clause.
  • Declaration as to the commencement of the Indemnity Period.