Certain underwriters at Lloyd’s are being sued in a class action in Australia.
To be conducted in the name of the representative applicant on behalf of group members, the class action is backed by litigation funder Omni Bridgeway and is being jointly run by Gordon Legal and Berrill & Watson. The case involves insured jewellers and gem merchants.
The lawsuit broadly alleges that the refusal to pay out indemnities for business interruption losses caused by the COVID-19 pandemic constitutes a breach of contract. The claim – at the centre of which are policies usually described as jewellers block and multi-perils insurance – is filed as an ‘open class’ proceeding.
“The class action is being funded by Australia’s largest litigation funder, Omni Bridgeway, as a registered management investment scheme in accordance with new funded class action regulations introduced by the Australian government in 2020,” said class action law firm Gordon Legal.
It was noted that Omni Bridgeway would be entitled to a share of any sum received in a successful result, be it an award by a court or an amount paid by way of settlement.
“Assuming that Lloyd’s is found liable to indemnify you under your policy, the policy itself sets out what losses can be claimed and how your losses are to be assessed,” stated Gordon Legal in an FAQ for claimants, “and the court may make rulings about how sections of the policy relating to the calculation of your losses are to be interpreted.”
