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The Star BI claim set for appeal battle

The Star Entertainment Group is appealing a Federal Court business interruption decision that found the casino operator was not covered for losses resulting from COVID-19 restrictions.

The company filed its appeal last week after Chief Justice James Allsop on August 5 found the pandemic was not a catastrophe for the purposes of the insurance policy and there had been no physical damage.

Respondents in The Star lawsuit are Chubb, AIG Australia, XL Insurance, Zurich Australian Insurance, Allianz Australia, Swiss Re International, Assicurazioni Generali, Liberty Mutual, HDI Global, Allied World Assurance and PICC Property and Casualty.

Lawyers have said the progress of The Star’s case will be closely watched given other large companies would have similar civil authority extensions in their policy wordings.

In other activity related to business interruption disputes, preliminary Federal Court sessions have been held on separate class actions involving QBE and a Lloyd’s syndicate.

Justice Jayne Jagot has ordered defences to be filed, with applications by the insurers for a stay on the proceedings to be heard for both matters on October 5.

The lead claimants are Cody Gemtec Retail, trading as the National Opal Collection, in the Lloyd’s case and Strand Fitness in the QBE matter.