Media release | Melbourne hospitality businesses take on their insurers due to pandemic

A number of hospitality businesses including pubs and restaurants based in Melbourne have launched proceedings in the Supreme Court of Victoria against their insurers following last year’s imposed lockdowns.

The business interruption claims, backed by litigation funder Court House Capital, have been denied by their insurers on the basis that COVID-19 related interruptions that led to the nationwide lockdown and a subsequent four month Melbourne shutdown do not fall within the limits of their policies.

The initial batch of claims, issued by Gadens are estimated to have a value of approximately $20 million.

Gadens partner, Simon Theodore said “Gadens has always been committed to supporting business and the pandemic has certainly disrupted Melbourne’s hospitality industry. A number of pubs and restaurants across Melbourne continue to face uncertainty, and it is likely to take the industry a long time to recover. We are committed to helping these businesses recover as quickly as possible in forcing insurers to pay claims that should be paid.”

Court House Capital CEO, Michelle Silvers said “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. Melbourne’s hospitality sector may be up and running again, but the nationwide shutdown and the extended Melbourne shutdown in 2020 will impact these business for years to come.”

“The funding of the business interruption claims by Court House Capital will assist in the recovery process,” said Ms Silvers.

Gadens will be filing a number of further business interruption claims in the Supreme Court of Victoria from more Melbourne based hospitality businesses.

For more information, contact:

Simon Theodore
Partner
Tel:         +61 3 9252 2523
Mobile:   +61 405 151 320
Email:     simon.theodore@gadens.com

Russell Fox
Head of Business Development & Marketing, Gadens
Tel:         +61 3 9612 8285
Mobile:   +61 415 500 753
Email:     russell.fox@gadens.com

Zan Davies
Media Advisor, Court House Capital
Tel:          +61 2 9252 1111
Mobile:    +61 407 669 969
Email:     zan@elomenopr.com.au