A Federal Court decision on a Vero business interruption exclusion dispute brought by a Melbourne cafe and restaurant could be delivered this month or early next year.

The dispute, brought by Rockment Pty Ltd, which owns Vanilla Lounge in suburban Oakley, was expedited to a Full Court hearing on November 27 before Justices Anthony Besanko, Roger Derrington and Craig Colvin.

Legal firm LGM Advisors, acting for the hospitality business, says the policy exclusion clause focuses on the biosecurity emergency or human biosecurity emergency declared under the Biosecurity Act 2015.

“The issue with that exclusion in our point of view is that certain steps follow that event, and nothing was done at the Commonwealth level pursuant to the Biosecurity Act which actually caused closures to Rockment’s business,” LGM Advisors Principal Libby Lowe said.

Court documents obtained by insuranceNEWS.com.au say insurer AAI has maintained that at all material times “amongst other things” the claim made under its Retail Services Policy is excluded by wording under a sub-section headed “What we do not cover”.

No timing has been given for the Federal Court decision on the Vero matter.

An Insurance Council of Australia (ICA) test case on policies citing the repealed Quarantine Act was heard by five NSW Court of Appeal justices on October 2, with a unanimous decision in favour of policyholders handed down on November 18.