Greggs has won a landmark decision in a legal battle.
This was over a £150 million insurance policy during the coronavirus pandemic which prompted this claim.
A High Court judge yesterday upheld nearly all of the bakery retailer’s claims for business interruptions caused by the pandemic.
In a move that could cost Zurich Insurance tens of millions of dollars more than it claimed was its legal obligation,
Greggs’ lawyers stated that every outlet experienced some interruption or interference.
Greggs employs approximately 25,000 people across over 2,200 stores in the United Kingdom.
Due to government lockdowns imposed to limit the spread of Covid-19 during trading.
The retailer sought more than £150 million under its Zurich policy, claiming numerous instances of business interruption.
The company stated in January of last year that it had discharged its obligations to Greggs after paying the company that sum.
Greggs announced in court that it would close all of its stores on March 23, 2020, to protect customers and employees from Covid-19.
The store remained closed until late May when management began a phased reopening.
Greggs’ lawyers argued in court that subsequent ministerial restrictions.
This was combined with the virus’s effects, resulting in additional business interruption losses.
Mr. Justice Butcher of the High Court in London agreed that there was more than one instance of business interruption and expressed hope that the “parties will be able to agree on the number.”
The judge, who previously ruled on similar issues involving the Stonegate Pub Company and Various Eateries Trading stated that.
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if Greggs and Zurich could not agree on the number of occurrences, he would have to hear arguments.
Manoj Vaghela, a partner at the law firm that represented Greggs, stated that the ruling had “broader implications for all businesses that purchased the resilience insurance policies.” Zurich’s argument, according to the lawyer, “has been firmly rejected.”
Greggs generated nearly £1.23 billion in revenue last year as a result of its “ambitious strategic plan.”
Zurich said it was reviewing the decision and had no further comment.
Source: Retail Gazette