AN Aberystwyth bar has won an historic legal case, which has been described as pivotal for hospitality businesses across Wales.

The Court of Appeal has ruled in favour of Why Not Bar & Lounge Ltd, in an historic Covid-19 business interruption test case.

This case is a pivotal victory for hospitality businesses across Wales and the UK that experienced devastating financial losses during the national lockdowns imposed by the UK Government amid the Covid-19 pandemic.

Hugh James represented Why Not Bar, alongside five other ‘at the premise’ test cases, on appeal from the High Court.

The insurers challenged on grounds of causation, knowledge, and the relevance of the requirement for the closure of premises to be on approval or advice of a medical officer of health.

The Court of Appeal handed down judgment in favour of policyholders and dismissed insurers’ appeals.

Lord Justices Males, Popplewell and Lady Justice Andrews upheld the decision that insurance clauses covering the occurrence or manifestation of Covid-19 ‘at the premise’ do in principle provide cover to affected businesses.

Erich Kurtz, Senior Associate at Hugh James, who acted for Why Not Bar said: "This Court of Appeal judgment is another crucial step in providing vital legal certainty to thousands of businesses with ‘at the premise’ insurance policies.

“Hugh James hopes that insurers will now engage constructively with policyholders and no longer delay assessment and payment of compensation to those affected."

Mark Phillips, co-owner of Why Not Bar with wife Rhian, commented on the ruling: “This judgment is a tremendous victory, after four and a half years of continued denials from our insurers that they should meet our losses suffered throughout the Covid-19 pandemic. 

“This is not just a win for our business, but another step forward in providing a lifeline for all those businesses effected. 

“The emotional strain, psychological toll and financial distress caused by our insurers ongoing refusal to pay compensation cannot be overstated. We have lost loved ones, struggled financially and my wife has suffered significant anxiety and distress because of this ordeal. 

“We cannot give enough thanks for the unwavering support we received from our family, friends and the professionalism of Hugh James.”

This decision is a beacon of hope for thousands of businesses that held out hope for compensation amid the pandemic's economic impact. With the Court of Appeal’s ruling in place, policyholders are closer to receiving the payouts they are entitled to.