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Bath Racecourse Company Limited and others (Appellants) v Liberty Mutual Insurance Europe SE and others (Respondents)
Case summary
Case ID
UKSC/2025/0068
Parties
Appellant(s)
Bath Racecourse Company Limited and 21 other Claimants listed in Appendix 1 to the Particulars of Claim
Respondent(s)
(1) Liberty Mutual Insurance Europe SE (2) Allianz Insurance Plc (3) Aviva Insurance Limited
Issue
Do 'furlough' payments paid by the UK Government under the Coronavirus Job Retention Scheme (“CJRS”) to policyholders fall to be deducted from the amounts otherwise payable by insurers in claims for "business interruption" losses suffered because of the Covid-19 pandemic?
Facts
These appeals concern business interruption insurance claims arising out of the Covid-19 pandemic. Certain insurance policies provide explicit cover for losses resulting from interruption with the policyholder's business at their premises which arise in consequence of Government actions responding to certain insured perils. Covid-19 may be such an insured peril. The policies in these appeals contain "savings" clauses which provide for a deduction from the amount payable by the insurers if “any of the charges or expenses” of the policyholder “cease or reduce in consequence of the Damage” (or words to similar effect). These appeals concern the correct construction of such clauses. As part of the Government’s response to the Covid-19 pandemic, it established the CJRS. Under this scheme, employers who had “furloughed” their employees by instructing them to cease work could claim payments reimbursing the employers for their expenditure on the employees’ wages. Each of the appellants is a company which was insured under an insurance policy with the respondent insurers. The first appellants are six companies, each of which owns or operates a separate hotel in England. The second appellants are various insured companies within the Arena Racing group, who operate racecourses and greyhound racing tracks, among other things, in England and Wales. Each appellant successfully claimed payments under the CJRS after furloughing their employees by instructing them to cease work. The appellants claimed business interruption losses sustained during the Covid-19 pandemic under their insurance policies with the respondents. The respondents accept that they are in principle liable in accordance with the policies for such losses but argue that the payments received by the appellants under the CJRS should be deducted from the sum payable under the savings clauses in the insurance policies. In the High Court, Jacobs J found that credit should be given for the CJRS payments. The Court of Appeal agreed with that conclusion. The Appellants now appeal to the Supreme Court.
Date of issue
23 April 2025
Case origin
PTA
Linked cases
Appeal
Justices
Hearing dates
Full hearing
Start date
11 February 2026
End date
12 February 2026
Watch hearings
11 February 2026 - Morning session
11 February 2026 - Afternoon session
12 February 2026 - Morning session
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Permission to Appeal
Justices
Permission to Appeal decision date
1 July 2025
Permission to Appeal decision
Granted
Previous proceedings
Change log
Last updated 14 August 2025