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Lockdown legal actions head to Victorian court

Victorian hospitality enterprises hit by last year’s lockdown have launched court actions through legal firm Gadens over denied business interruption claims.

Gadens says the initial batch of claims filed with the Supreme Court have a total value of about $20 million and it is likely more will be filed in actions backed by litigation funder Court House Capital.

The Melbourne-based pubs and restaurants businesses, which include Transport Hotel in Federation Square, have had claims denied on the basis that their policies don’t cover last year’s COVID-19 related interruptions.

“There is little doubt that Melbourne’s hospitality industry bore the brunt of forced business closures during two shutdowns, resulting in significant losses in revenue,” Court House Capital CEO Michelle Silvers said. “The nationwide shutdown and the extended Melbourne shutdown in 2020 will impact these business for years to come.”

The matters have not been filed as a class action, but it’s intended they would be heard concurrently.

Insurers involved in the claims are Arch Underwriting, Catlin Australia, AIG, Chubb, Berkshire Hathaway Specialty Insurance, Pen Underwriting, Hollard, XL Insurance, Zurich and Miramar Underwriting Agency, the firm says.