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Charles Dougherty KC and Timothy Killen successful in Latest Court of Appeal Covid-19 Business Interruption Insurance Judgment: International Entertainment Holdings Limited & Others v Allianz Insurance Plc [2024] EWCA Civ 1281

Posted: 28/10/2024

In January 2024 Jacobs J handed down a combined judgment in seven actions considering various issues arising in claims for business interruption cover as a result of the Covid-19 pandemic. The claims all related to non-damage denial of access clauses in various commercial insurance policies Gatwick Investment v Liberty Mutual Insurance SE [2024] EWHC 124 (Comm).

Charles Dougherty KC and Timothy Killen acted in those proceedings for Allianz PLC in the International Entertainment Holdings action which concerned a clause which provided cover for “Any claim resulting from interruption of or interference with the Business as a direct result of an incident likely to endanger human life or property within 1 mile radius of the premises in consequence of which access to or use of the premises is prevented or hindered by any policing authority…”

Jacobs J found that the clause did not provide cover for Covid-19 business interruption loss on the grounds that a case of Covid-19 did not, without more, amount to an “incident”, and that central government or the Secretary of State for Health could not be a “policing authority”. The claim was therefore dismissed. The Claimants appealed, and Allianz cross-appealed on the issues concerning limits and corrective construction.

On appeal, although the reasoning differed slightly, the Court of Appeal essentially upheld Jacobs J’s conclusions on the interpretation of both “policing authority” and “incident”, as used in the clause, such that the claim remained dismissed. The issues on the cross-appeal therefore did not arise but, had they done so, Males LJ (with whose judgment the other members of the Court agreed) said that he would not have disturbed the judge’s decision on either issue.

The judgment is likely to be of particular interest to those insurers and policyholders with “policing authority” or “incident” wording, but also provides further useful general guidance to add to the ever-expanding collection of Covid-19 business interruption judgments.

The Court of Appeal’s judgment can be read in full here.

Charles Dougherty KC and Timothy Killen were instructed by James Deacon and Hannah Stanford of DAC Beachcroft.

Authors

Charles Dougherty KC

Call: 1997 Silk: 2013

Timothy Killen

Call: 2010

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