The Federal Court has ruled against hearing covid-related business interruption claims involving four insurers as class actions, leaving policyholders to pursue cases individually if they want to proceed.

Justice Michael Lee on Friday adjourned proceedings to a date to be fixed for the “making of declassing orders” after insurers argued against the matters being heard as group actions. Policyholders who had planned to participate in the class actions will be sent notices about their rights to pursue claims.  

Gordon Legal filed in Cody Gemtec Retail t/as the National Opal Collection v the underwriting members of Syndicate 2003 at Lloyd’s; and Strand Fitness & ors v QBE. Slater & Gordon filed CMC Hospitality v Insurance Australia; and Vicki Field Swim School v Hollard.

“IAG welcomes the judgment and continues to encourage its customers with business interruption cover who may have been impacted by Covid-19 to lodge a claim which will be assessed as efficiently as possible under our standard claims process,” the insurer said today.

The company notes there will be a further case management hearing and an appeal period remains open, and it will provide a further update “at the appropriate time”.

Gordon Legal partner James Naughton told insuranceNEWS.com.au group members are urged to get in touch to discuss pursuing individual claims against their insurers.

Court-ordered notices inviting policyholders to register their interest in the proposed class actions received thousands of responses by a deadline set earlier this year.

Berrill and Watson Lawyers principal John Berrill says Friday’s decision against proceeding as class actions goes only to the appropriate vehicle for resolving the claims.

“The decision makes no findings about the merits of the claims,” he said. “It is just now up to the individuals to pursue the disputes and claims themselves.”

Claims arising from the 2020 pandemic lockdowns will soon approach a notional six-year limit for pursuing court action and it is important people do not delay looking at their rights and options, he says.