London International Exhibition Centre Plc v Royal & Sun Alliance Insurance Plc & Ors

London International Exhibition Centre Plc v Royal & Sun Alliance Insurance Plc & Ors

The Supreme Court's concurrent causation analysis applies to 'at the premises' disease cover: it is sufficient for the policyholder to prove that government action causing business interruption was in response to cases of COVID-19 including at least one at the premises, regardless of whether the action was specifically targeted at that premises or whether 'but for' causation is established. Occurrences of COVID-19 prior to its designation as a notifiable disease are not covered. The term 'Medical Officer of Health of/for the Public Authority' includes national Chief Medical Officers. The Mayfair wording 'suffered by any visitor or employee' is interpreted as equivalent to 'sustained' or...

Parties
Claimant: London International Exhibition Centre PLC; Defendant: Royal & Sun Alliance Insurance PLC; Defendant: Allianz Insurance PLC; Defendant: CNA Insurance Company Limited; Defendant: Aviva Insurance Limited; Defendant: Zurich Insurance PLC; Defendant: Chubb European Group SE; Claimant: Hairlab Limited; Claimant: Muscleworks Limited; Claimant: Bodylines Fitness Limited; Defendant: Ageas Insurance Limited; Claimant: Mayfair Banqueting Limited; Defendant: AXA Insurance UK PLC; Claimant: Kaizen Cuisine Ltd; Claimant: My Time Fine Fair Ltd; Claimant: Umberto’s Restaurant Ltd; Defendant: HDI Global SE - UK Branch; Claimant: Why Not Bar and Lounge Limited; Defendant: Zenith Insurance PLC; Defendant: QIC Europe Limited; Claimant: PizzaExpress Group Limited; Claimant: PizzaExpress (Restaurants) Limited; Claimant: Bookcash Trading Limited; Claimant: Agenbite Limited; Claimant: Pizza Express (Jersey) Limited; Defendant: Liberty Mutual Insurance Europe SE; Defendant: XL Insurance Company SE
Jurisdiction
England and Wales
Judgment Date
11 September 2024
Procedural Posture
Civil Commercial Insurance Test Case / High Court Judgment on Preliminary Issues
Outcome
Claims for business interruption losses under 'at the premises' disease cover succeed on the causation issue, subject to proof of occurrence at the premises after COVID-19 became notifiable and other policy terms.
Legal Topics
Business Interruption Insurance, Causation in Insurance, COVID 19 Pandemic Claims, Policy Interpretation, Notifiable Diseases, Public Authority Powers
Insurance Law Contract Law Business Interruption Insurance Causation in Insurance COVID 19 Pandemic Claims Policy Interpretation Notifiable Diseases Public Authority Powers

Case Brief

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Parties

London International Exhibition Centre PLC

Claimant

Royal & Sun Alliance Insurance PLC

Defendant

Allianz Insurance PLC

Defendant

CNA Insurance Company Limited

Defendant

Aviva Insurance Limited

Defendant

Zurich Insurance PLC

Defendant

Chubb European Group SE

Defendant

Hairlab Limited

Claimant

Muscleworks Limited

Claimant

Bodylines Fitness Limited

Claimant

Ageas Insurance Limited

Defendant

Mayfair Banqueting Limited

Claimant

AXA Insurance UK PLC

Defendant

Kaizen Cuisine Ltd

Claimant

My Time Fine Fair Ltd

Claimant

Umberto’s Restaurant Ltd

Claimant

HDI Global SE - UK Branch

Defendant

Why Not Bar and Lounge Limited

Claimant

Zenith Insurance PLC

Defendant

QIC Europe Limited

Defendant

PizzaExpress Group Limited

Claimant

PizzaExpress (Restaurants) Limited

Claimant

Bookcash Trading Limited

Claimant

Agenbite Limited

Claimant

Pizza Express (Jersey) Limited

Claimant

Liberty Mutual Insurance Europe SE

Defendant

XL Insurance Company SE

Defendant

Procedural Posture

Civil Commercial Insurance Test Case / High Court Judgment on Preliminary Issues

Legal Issues

  1. 1 Does the Supreme Court's causation analysis in the FCA test case apply to 'at the premises' disease cover?
  2. 2 Are occurrences of COVID-19 prior to its designation as a notifiable disease covered?
  3. 3 Does 'Medical Officer of Health of/for the Public Authority' include national Chief Medical Officers?

Ratio Decidendi

The Supreme Court's concurrent causation analysis applies to 'at the premises' disease cover: it is sufficient for the policyholder to prove that government action causing business interruption was in response to cases of COVID-19 including at least one at the premises, regardless of whether the action was specifically targeted at that premises or whether 'but for' causation is established. Occurrences of COVID-19 prior to its designation as a notifiable disease are not covered. The term 'Medical Officer of Health of/for the Public Authority' includes national Chief Medical Officers. The Mayfair wording 'suffered by any visitor or employee' is interpreted as equivalent to 'sustained' or...

Court Disposition

Claims for business interruption losses under 'at the premises' disease cover succeed on the causation issue, subject to proof of occurrence at the premises after COVID-19 became notifiable and other policy terms.

Orders

  • Supreme Court concurrent causation test applies to 'at the premises' disease cover.
  • Occurrences of COVID-19 prior to notifiability are not covered.