Dublin's Devlin Hotel's Case About Lack Of Compensation For Losses Caused By COVID-19 Pandemic Opens In Court
Dublin's Devlin Hotel's case about a lack of compensation for losses caused by the COVID-19 pandemic has open in the Commercial Court.
It was reported in October of 2020 that Premier Dale Limited trading as The Devlin Hotel of Ranelagh, Dublin 6, had taken legal action against Arachas Corporate Brokers Ltd and RSA Insurance Ireland DAC over a lack of compensation for losses caused by the COVID-19 pandemic.
As reported by The Irish Times, the first module of the case opened on Tuesday June 22, with Mr Justice Denis McDonald being asked to interpret the policy of insurance.
The defendants reportedly deny the hotel's claims and the insurer stated that they are not obligated to pay out on the policy.
Paul McGarry SC with Jack Tchrakian for the hotel reportedly stated said the legal action is an important test action for Press Up Hospitality Group, of which The Devlin is a part, and other companies that have similar policies with the insurer.
The Devlin reportedly said that the refusal to pay out on the business interruption claim has caused its business to experience "massive and mounting losses" without being able to access funds from its insurer, and that it entered into an insurance contract with RSA in October of 2019.
The Devlin stated that, under that contract, it is entitled to be compensated for financial losses expected to be greater than €1 million arising from business interruptions.
RSA reportedly refused to pay compensation for business interruption losses in April of 2020, and it is claimed that said refusal is a breach of RSA’s obligations under its contract with The Devlin.
The plaintiff reportedly also claims that Arachas provided it with advice and other services concerning insurance requirements, and that it relied on statements, representations and advice that were received by Arachas in relation to the contract with RSA.
However, RSA, which is being represented by Declan Buckley SC and Declan McGrath SC, reportedly stated that it is not obligation to pay out on the business interruption claim under the terms of its contract with Devlin.
According to RSA, there must be an outbreak of a notifiable infectious disease on the insured premises, under the terms of the contract, which was not the case.
The Devlin's operator is seeking damages for breach of contract, negligence, and negligent misrepresentation, as well as a declaration that it is entitled to be compensated for losses caused by business interruptions since March 15 of last year, under the terms of its contract with RSA.
The case is continuing today (Wednesday June 23).
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