Businesses affected by Primark fire urged to get legal advice over losses
BUSINESSES impacted by Tuesday’s devastating fire at Primark in Belfast city centre are being urged to seek legal advice to help compensate any significant losses.
The advice comes after 14 premises remained closed yesterday as structural engineers continued to assess the burntout shell on Royal Avenue.
Trade body Hospitality Ulster have said that businesses on Castle Street and close to the Bank Buildings should explore compensation options to deal with end-of-month profit losses.
The body’s chief executive Colin Neill said that he appreciated the enormity of the fire, but that a “tragedy shouldn’t lead to a crisis”.
“We sympathise and recognise the fire was a tragic loss for both Primark and Belfast,” he said.
“However, the surrounding area is home to many small businesses that cannot sustain the financial losses caused by forced closures.”
There has also been calls for rates to be suspended for businesses within the cordoned-off zone, which was reduced yesterday.
Mr Neill added: “With many depending on the end of month trading period to make a profit, we cannot allow tragedy to turn into a crisis for these businesses, as further losses could prove fatal.
“Whilst securing compensation is by no way straight forward, we have instructed one of Northern Ireland’s leading legal firms MTB (McCartan, Turkington, Breen) to explore all options for compensation due to direct loss of business as a result of the Primark fire.
“In the first instance business within the hospitality sector im- pacted by the fire should contact us for advice.”
Hospitality businesses in the surrounding area include Mourne Seafood Bar and Kelly’s Cellars bar, which both reopened yesterday.
Concerns had already been raised about the time frame of establishing whether anyone could be held liable for the fire.
And in addition to this, one expert at a legal practice in Belfast has now said that claiming compensation could also be time-consuming.
Speaking to the Belfast Telegraph,
the representative gave advice to affected businesses.
“What you would claim for is a loss of earnings or loss of profits,” he said.
“If you’re a building surrounded by the fire and have been damaged by it, it’s less difficult to claim.
“The first thing a business would do in a legal sense is to claim off Primark’s insurance. Their building has gone on fire. If it was started negligently then in those circumstances you’d be saying Primark’s insurance would have to pay out for you.
“If someone’s premises was not damaged by the fire but have suffered through the closure of roads and things like that in the aftermath of the fire, that’s a slightly more difficult scenario.”
A 45-metre exclusion zone was put in place on Wednesday.
The expert added: “The insurance company may challenge whether losses which are purely of an economic nature are recoverable.
“If someone is negligent, Primark may well have an argument with builders or somebody else.
“That’s really just a matter between the two insurance companies and will also depend on the contractual relationships between who ends up ‘holding the baby’ if you like.
“The key point would be showing that Primark or one of their contractors was negligent and then also if your building wasn’t physically damaged by the fire, can you claim your losses back for a loss of profits and loss of business as a result of the closure of the surrounding areas”.
Another solicitor said that if liability falls with contractors who were carrying out £30m renovations on the building, criminal penalties could also ensue. This could occur if health and safety obligations were breached or were not followed properly.