Federal Court reschedules hearing of second business interruption test case

It was meant to commence on August 30

Federal Court reschedules hearing of second business interruption test case

Insurance News

By Roxanne Libatique

The Federal Court of Australia (Court) has rescheduled the hearing of the second business interruption (BI) test case, moving it a week later than previously scheduled.

The second hearing of the BI test case was meant to commence on August 30. However, the Court ordered the hearing to commence on September 06 instead, in light of some policyholders’ difficulties obtaining verified government data and expert evidence concerning the location and prevalence of COVID-19 outbreaks. The rescheduled hearing will run until September 15.

The second test case consists of nine small business claims from several business sectors and locations, lodged with the Australian Financial Complaints Authority (AFCA) as part of its dispute resolution process. The Court’s determinations in the first and second test cases will provide clarity and guidance for not only those involved in the cases but all insurers and policyholders.

At a hearing on Tuesday, August 24, the Court agreed with the proposal of the insurers and policyholders that the September 06 hearing proceed based on the available evidence. However, the policyholders participating in the second test case can present additional factual and expert evidence relevant to their claims if it becomes available later.

Insurers do not anticipate that postponing the hearing of the second test case will impact the timeframe for any appeal, which has been scheduled to be heard by the Full Court of the Federal Court in November 2021.

Insurance Council of Australia (ICA) CEO Andrew Hall said the new hearing schedule provides policyholders with more time to obtain verified State Government data and expert evidence for their cases while allowing the hearing to proceed based on the available evidence.

“We thank policyholders involved in this second test case for their time and patience in this important test case process,” Hall said. “Insurance Council members are committed to applying the courts’ rulings in both this and the first test case in an efficient, transparent, and consistent way when determining business interruption claims.

“We encourage all business interruption policyholders who believe they may have a claim and have not already done so to lodge a claim and gather and keep all necessary documents in support of it.”

Related Stories

Keep up with the latest news and events

Join our mailing list, it’s free!