FCA v Arch Insurance (UK) Ltd and others [2020] EWHC 2448 (Comm)
We reported on this landmark test case back in September where judgement was laid down in the UK High Court. Following an appeal, the Supreme Court have now had their say, and it could have major implications for Irish insurance companies and the insured.
The UK Supreme Court ruled, on Friday 15th of January 2021, that businesses affected by the national lockdown should have been covered by their insurer for losses suffered as a result of the lockdown. This is a major decision as it now means affected businesses can seek to recover losses attributable to the national lockdown in the UK. With an estimated 370,000 policy makers affected claims in the region of £1.2 billion is now expected to be made against the insurance companies involved.
This ruling has major implications for a similar test case here in Ireland, which is listed in the Commercial Court, involving FBD Insurance who have been sued by four pubs including Sean’s Bar in Athlone and Dublin pubs Sinnott’s, Lemon & Duke, and the Leopardstown Inn. For more details on the case, see our previous report from October, 2020.
Judgement in this case was due to be delivered on 15th of January 2021 also but was adjourned until the 5th of February 2021 in order to allow the relevant parties to the case make submissions on the UK Supreme Court’s decision, which now undoubtedly will have a considerable impact on the Irish case.
About the author: Ciarán Leavy, Partner and Head of Commercial Litigation
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