More than 1,000 pubs have an interest in FBD ‘test case’, court told

More than a thousand pubs have an interest in a dispute that has come before the Commercial Court over whether insurers should pay for the pubs’ losses arising from being closed as a result of the coronavirus lockdown, the court has been told.

Four cases were entered into the Commercial Court list on Monday, involving Sinnotts pub, the Leopardstown Inn, Sean’s Bar, and the Lemon & Duke, with a hearing involving the first three being listed for October 6th next and expected to last as long as 12 days.

The defendent in each case was FBD Insurance plc, represented by the former attorney general, Paul Gallagher SC.

He said there was a public interest in an early hearing of the issues, as there were more than a thousand pubs affected and the hearing would be a “test case” which would be of “great significance” for all the parties interested.

Michael Cush SC, for Sinnotts and a number of other applicants, said the applications to enter the Commercial Court list was being consented to by all the parties involved.

The pubs had insurance in place that raised the issue of the consequential losses triggered by the Covid-19 lockdown and, if such losses were covered, the principals that arose for calculating the damages that were due for recovery, he said.

The parties involved recognised the urgency of the issues involved, given that more than 1,000 public houses were affected.

The cases involving Sinnotts, the Leopardstown Inn, and Sean’s Bar were entered for the October hearing.

Talks

The court was told that the case involving the Lemon & Duke might be adjourned for two weeks as mediation talks continued. If it was not resolved, it could be joined to the October hearing along with the other cases.

Mr Gallagher said the issues to be determined were ones of interpretation, including whether there was “an insured peril”, as well as “causation issues” and the extent of any indemnity.

The issue of what amount might be involved in damages might be left to a later module or hearing, he said. In this way a decision on liability could be appealed before any “quantum” had been determined. This approach was the most efficient use of court time, he said.

The timetable for the hearings was ambitious but the parties involved recognised the urgency of the matter, Mr Gallagher said.

Mr Justice David Barniville said he was satisfied the cases qualified for entry to the list and that they should be heard on an urgent basis.

The cases are being taken by the corporate entities that trade under the pub names. They are: Aberkent (Sinnotts, of King Street, Dublin); Hyper Trust (the Leopardstown Inn, Stillorgan, Dublin); Inn on Hibernian Way (Lemon & Duke, Duke Lane, Dublin); and Leinster Overview Concepts (Sean’s Bar, Athlone, Co Westmeath).