The consequences of the COVID-19 pandemic – and the
responses by State and Federal Governments - led to many businesses
suffering losses stemming from interruptions to their ability to
trade during the pandemic.
In Episode
4 of Called to Account (April 2021), we identified a number of
key issues likely to feature in appeals underway in the Australian
Courts related to COVID-19 business interruption losses, including
causation, proximity and the offsetting impacts of government
support initiatives. The episode also touched on findings in the
recent UK Supreme Court judgement, The Financial Conduct
Authority v. Arch Insurance (UK) Limited and Others
(UK Test Case) 1.
Those, and other legal, issues are comprehensively addressed in
the Federal Court's decision in the second COVID-19 business
interruption insurance test case, Swiss Re International Se v
LCA Marrickville Pty Limited 2 (Second COVID-19
insurance test cases) (Second Test Case). The
presiding judge,
