Four business interruption class actions will return to the Federal Court next year, after a preliminary hearing was held last week. 

Lawyers for the insureds have been asked to file amended applications and statements of claims following outcomes from the Insurance Council of Australia second test case. Insurers maintain the matters shouldn’t proceed as class actions. 

Chief Justice James Allsop ordered at a hearing in Sydney that the proceedings be stood over for a case management hearing before Justice Michael Lee on a date to be fixed. 

Separately, a preliminary Federal Court hearing was also held for a dispute filed by Shine Lawyers on behalf of Joyo-Kin Pty Ltd, the operator of Jetts Fitness Ocean Gove, which is contesting a claim denial by Hollard. 

Shine National Practice Leader - Commercial Disputes Bree Smith says the number of policies that may respond has narrowed significantly since the ICA test case decisions, but the firm believes the gym’s policy is one of those that’s valid. 

“The problem we are facing is that the onus is actually on the policyholder to prove that there were people within 20 kilometres of their business who were infected with Covid-19 at the time they were forced into lockdown,” she told insuranceNEWS.com.au.  

Ms Bree says the firm is having to make freedom of information requests to obtain more specific data around community transmission, and that generally insurers are making it challenging for businesses that may have valid claims. 

“They are making it really difficult to get these ones over the line,” she said. “We are nearly three years down the track and these small business owners are still out of pocket.” 

Chief Justice Allsop ordered both sides in the Jetts policy dispute to next year provide evidence they are seeking to rely on, ahead of a further case management hearing.