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Legal Update

Court of Final Appeal to Consider Interpretation of Business Interruption Coverage for New World Harbourview Hotel

30 August 2011
Mayer Brown JSM Legal Update

New World Harbourview Hotel Company Limited & Ors v. Ace Insurance Limited & Ors (FAMV6/2011) - Leave to appeal to Court of Final Appeal granted on interpretation of insurance cover.

Following the Court of Appeal decision to uphold the the interpretation of terms concerning business interruption losses under two Composite Mercantile Policies adopted by Reyes J. (which we reported on - see, leave has been granted by the Court of Final Appeal on 26 August 2011 to hear this case, in particular, on the following point of law:

"Whether, in common form and widely issued policies of the type in question, the provision of insurance cover in respect of loss sustained 'as a result of notifiable human infectious or contagious disease' is limited to cover losses resulting from infectious diseases which are by statute compulsorily notifiable or whether such cover extends to losses caused by diseases subject to administrative reporting requirements although not backed by statutory sanctions."

We will be keeping close tabs on the developments of this case. Watch this space!

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