The Supreme Court’s FCA Test Case concerned Covid-19 business interruption claims under policies with a “radius clause”, which the Supreme Court found provided cover for the occurrence of Covid-19 within a specified radius. The Supreme Court also held that in such a case but-for causation did not need to be satisfied.
Between 24 April and 4 May 2023, Jacobs J heard argument on preliminary issues in a series of claims by policyholders with “at the premises” coverage. In a judgment handed down last Friday, 16 April 2023, Jacobs J ruled in favour of policyholders on several of those preliminary issues. He decided that the Supreme Court’s analysis of causation applied equally to “at the premises” cover as well as radius cover, and therefore that the Supreme Court’s “concurrent causation” analysis could assist policyholders with such cover.
The decision will be of particular interest to policyholders with such policies where the claims have been denied by their insurers.
Jeffrey Gruder KC and Mubarak Waseem represented the policyholders in two of the cases, Hairlab and Kaizen, instructed by Barings Law.
David Scorey KC represented Liberty Mutual and XL Insurance Company in the claim brought by Pizza Express, instructed by DAC Beachcroft.
The judgment can be found here.
