Pub trade ‘in decline before the lockdown’, court told
BUSINESS in the pub trade was “falling off a cliff ” before the Government ordered the closure of venues across Ireland, the High Court has been told.
Four pubs, including Dublin bar Lemon & Duke, are suing FBD Insurance over its refusal to pay compensation for losses incurred as a result of the Covid pandemic.
On day three of the hearing in the High Court’s Commercial Court division, FBD argued the bars would have suffered huge losses even if they had been allowed to stay open.
Sinnotts bar, Sean’s Bar, The Leopardstown Inn and Lemon & Duke believe their FBD policies entitle them to recover all losses related to coronavirus, not just the forced closure.
“If one of these pubs had been in Sweden, where pubs remained open, they couldn’t have possibly brought a claim under the policy,” said Declan McGrath SC, for FBD.
Evidence from Open Table, an online booking site, showed there had been a 75pc drop in the number of diners on March 15 compared to the same period last year, he added.
Lemon & Duke is arguing that FBD misrepresented the cover that would be provided before it took out a policy.
The pub is co-owned by rugby stars Jamie Heaslip, Sean O’Brien and Rob and Dave Kearney, and managing director Noel Anderson.
The court was told a side letter was furnished to Mr Anderson from FBD employee Paul Shanahan on March 2 stating the policy would provide cover for coronavirus in the event of a forced closure.
On April 15, on receipt of legal advice, FBD said it was withdrawing the representation that the business interruption section of the policy contains an indemnity in respect of consequential loss arising from the pandemic.
Earlier, FBD said it would not pursue a contempt of court application after it alleged on Wednesday that documents from the pre-trial process had been leaked to the media.
The hearing continues before Mr Justice Denis McDonald.