A Welsh bar has won a historic legal case as part of their continuing fight for £1.5m in compensation for losses caused by Covid lockdown closures. Mark Phillips, who co-owns the Why Not Bar in Aberystwyth with wife Rhian, hailed the Appeal Court ruling as “a tremendous victory” after a four-year battle. Law firm Hugh James successfully represented the Why Not Bar, alongside five other test cases, going to the Court of Appeal to get insurers to pay up.
The insurers had challenged payouts for premises ordered to close during national lockdowns. However, the Court of Appeal found in favour of policyholders and dismissed the insurers’ appeals. The ruling stated that insurance clauses covering the “occurrence or manifestation of Covid-19” at premises do provide cover to affected businesses. After the ruling, Mark Phillips described the emotional and financial strain of being denied insurance compensation and expressed gratitude for the support received.
The Why Not Bar, located in Aberystwyth, closed in March 2020 at the start of the pandemic and never reopened. The couple has operated other businesses from the same premises. Hugh James stated that the implications of the case extend to all businesses in Wales and the UK with relevant insurance clauses, making it a landmark ruling. The law firm highlighted the significance of the judgment in providing legal certainty to businesses with “at the premise” insurance policies.
Erich Kurtz, a senior associate at Hugh James, emphasised the importance of insurers engaging constructively with policyholders to assess and pay compensation promptly. The firm expressed hope that the ruling would help businesses affected by the pandemic receive the payouts they are entitled to, providing a beacon of hope for those impacted financially. The case was deemed a pivotal victory for hospitality businesses across Wales and the UK that suffered losses during the lockdowns.
The Why Not Bar’s claim, worth £1.5m in losses, is specific to the client but carries broader implications for businesses nationwide. Mark Phillips’s remarks following the judgment underscore the relief felt after a prolonged legal battle and the impact of insurers’ initial refusal to compensate for losses. The fight for fair compensation continues for businesses affected by Covid-19 closures, with the recent ruling signalling a step towards recovery and justice for impacted businesses across the UK.