The High Court has begun hearing test cases aimed at resolving a dispute between four pubs and their insurer over losses suffered as a result of the pandemic.
They’re seeking compensation for what they claim are “consequential and ongoing losses” arising out of the imposed closure of their businesses.
The bars behind these test cases include three Dublin bars: The Leopardstown Inn, Lemon & Duke and Sinnotts. Sean’s Bar in Athlone is also part of the legal action.
Over a thousand other affected pubs are waiting in the wings to see what happens.
Opening the case for the Dublin pubs today, Michael Cush said the outcome of this case could mean the difference between pubs being able to stay in business or not.
He also noted that it could have significant financial implications for the insurer, FBD Insurance.
One of FBD’s counter-arguments is that cover is only provided to “localised outbreaks” of a disease, and not a national pandemic.
If the judge decides the pubs are covered, he’ll then have to consider how losses should be measured.
These cases follow in the footsteps of a similar case in the UK, which found in favour of the policy holders.
However, that decision is subject to a Supreme Court appeal.
*Reporting by Frank Greaney
