• Who-we-are-banner

    News

Charles Russell Speechlys succeed in Greggs v Zurich Covid-19 insurance trial

Charles Russell Speechlys successfully act for Greggs in landmark business interruption trial. Today’s judgment substantially accepts Greggs’ primary case for payment of business interruption and related losses caused by Covid-19 and its consequences.

This follows July’s Preliminary Issues trial to determine how many Single Business Interruption Limits of £2.5m were payable under the Resilience Insurance wordings as a result of business interruption caused by Covid-19.

Insurers contended that there was only one ‘single occurrence’ under the insurance policy, entitling Greggs to only one limit of £2.5m for all of its Covid business interruption losses. The judge rejected this argument.

For its part, Greggs argued that it was entitled to access a separate limit of £2.5m each time the Westminster and devolved governments in the UK adopted a major Covid restriction measure affecting Greggs’ business, meaning that there were multiple such restrictions and corresponding £2.5m limits. The judge accepted the main thrust of Greggs’ primary case. He ruled that there was a single occurrence at the outset (from March 2020 until May 2020) followed by separate occurrences in each jurisdiction within the UK as the level of major restrictions in place was adjusted from time to time over the course of 2020 and also separate occurrences within each jurisdiction where there were local lockdowns or other restrictions. The Judge also held that those regulations which merely continued existing restrictions or made trivial changes did not provide additional £2.5m limits.

Charles Russell Speechlys Partner, Manoj Vaghela, commented:

This outcome vindicates Greggs commencing proceedings and has wider implications for all businesses that purchased the Resilience Insurance policies. Insurers’ argument that there was only one limit available for Covid business interruption losses has been firmly rejected. “

The result reflects the hard work of Charles Russell Speechlys and our talented counsel team of Christopher Hancock KC, Simon Milnes KC and Courtney Grafton of Twenty Essex.”

Jonathan Jowett, General Counsel of Greggs, said:We would like to thank Manoj, and the rest of the legal team for their expertise in successfully arguing the interpretation of complex coverage wording, and for the long hours they have had to devote to this successful outcome.”

Subject to appeal, Greggs plc v Zurich Insurance plc (Case No: CL-2021-000622) will now proceed to phase 2 when insurers and Greggs will calculate the value of the business interruption loss recoverable under the insurance policy.

The Charles Russell Speechlys team was led by Manoj Vaghela, Partner, with support from Partner, Charlotte Pender, Associate, Hannah Gornall, Associate, Rory Partridge and Trainees Mary Barrett and Harriet Lucas.

Related coverage:

Insurance Business UK, Law 360, Insurance Post, The Law Society Gazette and Insurance Insider

Our thinking

  • Claims for reasonable financial provision beyond the grave?

    Jennifer Doggett

    Insights

  • Arbitration Rules – How Different Are They?

    Mazin Al Mardhi

    Insights

  • What the cancellation of HS2 Phase 2 means for former landowners

    Richard Flenley

    Insights

  • The status of transgender and intersex athletes in international sports federations

    Pierre Bydzovsky

    Insights

  • Charles Russell Speechlys advises Development Partners International and Verod Capital Management on investment into Pan African Towers

    Adrian Mayer

    News

  • Overview of the Leasehold and Freehold Reform Bill: What are the key provisions?

    Laura Bushaway

    Insights

  • James Broadhurst writes for the Financial Times’ Your Questions column on business succession plans

    James Broadhurst

    In the Press

  • Talking Retail quotes Jamie Cartwright on the CMA's report on grocery price inflation

    Jamie Cartwright

    In the Press

  • Property Week quotes Claire Fallows on reforms to the planning system announced in the Autumn Statement

    Claire Fallows

    In the Press

  • Francesca Charlton and Kayleigh McKee write for People Management on the Worker Protection Act

    Francesca Charlton

    In the Press

  • Charles Russell Speechlys successfully advises the Joint Liquidators of LB GP No.1 Ltd in Lehman Brothers litigation before the High Court in London

    Daniel Moore

    News

  • Q&A: Adverse possession

    Hope Barton

    Insights

  • FT Wealth quotes Sarah Anticoni and Vanessa Duff on prenups to protect family wealth

    Sarah Anticoni

    In the Press

  • Caroline Swain writes for Startups Magazine on 'Green Claims'

    Caroline Swain

    In the Press

  • Briefing quotes Noni Garratt-Wall and Sarah Grant on Building our Brand

    In the Press

  • The i quotes Rose Carey on UK net migration figures

    Rose Carey

    In the Press

  • BE News quotes Louise Ward on the Autumn Statement and life sciences support

    Louise Ward

    In the Press

  • Spears quotes Piers Master on the Harrington Review of Foreign Direct Investment

    Piers Master

    In the Press

  • The Times quotes Emily Campbell on the Chancellor’s ‘pot for life’ reforms

    Emily Campbell

    In the Press

  • Charles Russell Speechlys hosts second Women in Leadership event

    Sarah Wigington

    News

Back to top