Barings Law is still awaiting judgement to be handed down on the issue of Severance for the eight multi-claimant actions progressing through the Birmingham Courts. The judgement will determine how the claims in these actions are to progress, in particular the number of trials needed to determine the relevant issues. The claimants in the multi-claimant actions each allege that a discretionary commission model was used to determine the amount of commission which their credit intermediary was paid by their motor finance provider. These models were banned by the Financial Conduct Authority (FCA) in January 2021. 

Alongside the wait for judgement, we continue to prepare to bring further claims against credit intermediaries and motor finance providers. These next rounds of litigation concern the practice of credit intermediaries breaching the duties they owe to their customers by receiving undisclosed commissions and bribes from motor finance providers. 

Seperately, we have been completing questionnaires with a number of our clients to assess their eligibility for claims related to unaffordability and creditworthiness. This follows a number of high-profile motor finance providers having Financial Ombudsman Service (FOS) decisions upheld against them relating to these arguments. 

FatFace LTD

We are now in the process of drafting the Particulars of Claim while we look to issue the case in court. When we have made progress in this, all our clients will be notified. 

South Staffs Water

The defendant’s solicitors have confirmed the receipt of the Letter of Claim we recently issued. This signifies their awareness of the raised issues on behalf of our clients. We are currently waiting for their substantive response, which may take a number of months due to the data breach’s complexity and the high number of claimants we represent. 

Arnold Clark 

The defendant’s solicitors have acknowledged the Letter of Claim we sent on behalf of our clients. This means they are aware of the allegations and the situation. Currently, the defendant’s solicitors are conducting an in-depth investigation into the matter, which includes evaluating the evidence and the legitimacy of the data breach claim.

Capita

We have issued a Letter of Claim to Capita about the data breach on behalf of our claimants. The defendants have confirmed receipt through their solicitors. Currently, they’re in the process of investigating the incident, a crucial step in gathering information before responding. They’re entitled to three months for this investigation before they reply as per legal requirements.

DSG Limited 2017 

Following a productive meeting with our barrister to extensively review this case, we have now made an application to the court. We now await the court to list the hearing and we will update our clients once we have been notified.

Curry’s Retail LTD (Formerly Carphone Warehouse) 

We have made an application to the court and are currently waiting for the case to be listed. Once we have received an update, our clients will be notified.

Zellis

We have recently sent a Letter of Claim to the defendant on behalf of our claimants, this presents the case and its concerns. They will thoroughly assess the claim and the issues raised and then provide us with a response. Our legal team will be actively overseeing the process and ensuring that the defendant’s response aligns with the given time frame of 3 months.

The UK business interruption (BI) insurance claims landscape remains complex and dynamic, with ongoing legal battles between policyholders and insurers trying to interpret policy wordings and establish liability. Notable cases, including FCA v Arch & others (FCA), London International Exhibition Centre Plc & others v Royal & Sun Alliance Insurance Plc & others (Excel), Corbin & King Limited and Others v AXA Insurance UK Plc (Corbin & King) and Stonegate v MS Amlin & others (Stonegate) continue to shape the industry. This update, provided by solicitor and Head of Business Interruption Department at Barings Law, Iryna O’Reilly, aims to provide clarity on these intricate issues and the continuation of what is to come.

Barings’ Insight on Ongoing Covid-19 Business Interruption Insurance Litigation

Despite initial legal decisions in the aftermath of the FCA test case nearly three years ago, BI-related claims persist due to policy wording complexities.

Barings Law, being a key player in bringing these challenging claims on behalf of Small and Medium Enterprises (SMEs), including the recent “at the premises” test case of Excel in which Barings represented Kaizen Cuisine Limited & others v HDI Global SE – UK Branch and Hairlab Limited & others v Ageas Insurance Limited, recognises the significance of this ongoing battle in order for justice to be served to hundreds of thousands of businesses.

Ongoing Legal Battles: The Crux of the Matter

The pandemic introduced unprecedented circumstances, leading to disputes over whether there is coverage for COVID-19 on a particular policy wording construction. The unique nature of the pandemic raised questions about coverage, trigger mechanisms, evidence requirements, and financial losses, including furlough, rates, grants, bounce-back loan interests amongst others.

The interpretation of “at the premises” policy wording, exemplified by the Excel case, highlights the ambiguity that has prompted claims. This lack of clarity has necessitated legal intervention to decipher the extent of the coverage. While Mr Justice Jacobs’ ruling in the High Courts of Justice on June 16, 2023, was largely in favour of policyholders, insurers in Excel, as well as HDI Global SE – UK Branch, have lodged their appeals focusing on causation and policy construction.

Impact of Recent Judgements: Insights for Both Sides

While the FCA test case provided initial clarity, the uniqueness of individual policies and the evolving nature of the crisis have led policyholders to seek further resolution through legal channels.

Recent judgements, including Excel, Corbin & King, and Stonegate, clarified policy wordings and endorsed a broader view of causation, allowing insurers to better understand their obligations and policyholders to grasp the scope of their coverage.

Lingering Uncertainties and Legal Issues

While recent judgements have provided guidance, issues surrounding the aggregation of losses and the applicability of certain exclusions continue to cause disputes, prolonging claims as a result.

Noteworthy Cases in Progress

Several significant cases, including Excel, Kaizen Cuisine Limited and Stonegate, are currently progressing through the commercial court. These cases hold significance due to their potential to set precedents and further shape the landscape of BI insurance claims.

There are several appeals to be heard at the end of 2023, which could resolve complex and lingering BI issues. However, not all policy wordings will be addressed by these decisions, likely leading to further litigation.

Impact on Reserves: Aggregation Uncertainties

Uncertainties, especially concerning the aggregation of losses and multiple triggers have left many cases incapable of settling. Barings Law has been faced with challenges from the insurance industry during attempts to negotiate. As we take a robust stance on unresolved issues, it may be that the lack of clarity on how multiple losses should be treated and aggregated within a policy has left insurers cautious, impacting their ability to manage reserves effectively.

Stonegate’s Appeal: Key Issues and Significance

Stonegate’s appeal, expected to be heard late 2023, focuses on policy wording interpretation, causation, exclusions, furlough, and aggregation. As a landmark case, its outcome will influence future BI claims and loss quantification, which should further settlements.

Potential for Reinsurance Disputes

Reinsurance disputes still loom, potentially necessitating court proceedings to set binding precedents. Complex policy language, coverage scope, and aggregated losses are common issues.

Conclusion

The UK BI Insurance Landscape remains intricate and evolving. Recent judgements offer valuable insights, but uncertainties persist. Ongoing legal battles, including Excel and Stonegate’s appeal, highlight the complexity. Barings Law remains committed to assisting clients in navigating these challenges, holding insurers accountable, and bringing justice to UK businesses.

The lenders have unfortunately been reluctant to settle these claims and as such, we have been left with no alternative but to issue the claims at court which we are now actively pursuing. With many claims having already been issued and many more to follow, we hope to have settlement offers within the next few months. 

We are thrilled to announce that we have achieved a significant victory for one of our clients. We successfully settled a claim for a remarkable £3,100, accompanied by an additional £750 in legal costs. Our client had faced the unfortunate situation of their landlord failing to protect their deposit in a government-approved scheme. The resolution was met with great satisfaction from our client, reflecting our commitment to ensuring their rights are protected and upheld.

In line with our dedication to securing the best outcomes for our clients, we are currently immersed in a high-value claim that stands out from our typical cases. Our determination to advocate for our client’s best interests remains unwavering. We understand the importance of this claim and the potential impact it holds for our client. Rest assured, we are sparing no effort to navigate through the complexities and intricacies of the case, aiming for a favourable resolution that aligns with our client’s needs.

At Barings Law, our mission continues to revolve around ensuring fairness, transparency, and protection for our clients. We’re incredibly proud of our team’s accomplishments, and we appreciate your ongoing support.