Greggs Plc v Zurich Insurance Plc [2022] EWHC 2545 (Comm) (17 October 2022)

Greggs Plc v Zurich Insurance Plc [2022] EWHC 2545 (Comm) (17 October 2022)

The court held that the relevant 'single occurrences' for aggregation under the policy were the various government announcements and measures that significantly affected Greggs' business, not a single event such as the emergence of the virus or a coordinated government response. Each materially different government restriction or regulation constituted a separate occurrence for aggregation purposes. The court rejected Zurich's argument that all losses should be aggregated as a single occurrence and found that the number of occurrences should be determined by reference to the specific government measures, subject to further argument if necessary.

Citation
[2022] EWHC 2545 (Comm)
Parties
Claimant: Greggs PLC; Defendant: Zurich Insurance PLC
Jurisdiction
England and Wales
Judgment Date
17 October 2022
Procedural Posture
Commercial Insurance Claim / Expedited Trial of Preliminary Issues
Outcome
Judgment for the Claimant on the aggregation issue; Zurich's aggregation arguments rejected.
Legal Topics
Business Interruption Insurance, Policy Construction, Aggregation Clauses, COVID 19 Losses, Government Restrictions, Causation, Quantum
Insurance Law Contract Law Commercial Law Business Interruption Insurance Policy Construction Aggregation Clauses COVID 19 Losses Government Restrictions +2 more

Case Brief

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Parties

Greggs PLC

Claimant

Zurich Insurance PLC

Defendant

Procedural Posture

Commercial Insurance Claim / Expedited Trial of Preliminary Issues

Legal Issues

  1. 1 Whether Greggs' business interruption losses from COVID-19 are subject to aggregation as a 'single occurrence' under the policy
  2. 2 Proper construction of the insuring clauses and aggregation provisions
  3. 3 Identification and number of 'Covered Events' and 'single occurrences' for policy purposes

Ratio Decidendi

The court held that the relevant 'single occurrences' for aggregation under the policy were the various government announcements and measures that significantly affected Greggs' business, not a single event such as the emergence of the virus or a coordinated government response. Each materially different government restriction or regulation constituted a separate occurrence for aggregation purposes. The court rejected Zurich's argument that all losses should be aggregated as a single occurrence and found that the number of occurrences should be determined by reference to the specific government measures, subject to further argument if necessary.

Court Disposition

Judgment for the Claimant on the aggregation issue; Zurich's aggregation arguments rejected.

Orders

  • The number of relevant occurrences for aggregation is to be determined by reference to materially different government measures; parties to agree the number or return for further argument if necessary.
  • Issues of causation and quantum reserved for later determination.