In breaking news, the High Court has today dismissed with costs The Star’s application for special leave, putting an end to The Star’s claim against its business interruption insurers. It also rejected similar special leave applications by other insureds in the industry test case known as the Second COVID-19 Business Interruption Test Case or Test Case 2.

The Star had sought to unlock billions in cover under a Civil Authority Extension (CAE) on the basis that the government orders were the actions of an authority to retard a “catastrophe” in the form of the pandemic. At first instance, Allsop CJ held in August 2021 that the CAE did not apply. In February 2022, the Full Federal Court dismissed The Star’s appeal, upholding the first instance judgment.

The High Court’s decision is significant for insurers generally and provides important guidance to the insurance industry on dealing with claims for COVID-19 related BI loss. It should end over two years of debate and litigation in which insurers have successfully prevailed.

The High Court today also rejected similar special leave applications by other insureds in the industry test case known as the Second COVID-19 Business Interruption Test Case or Test Case 2.

The W+K team has been delighted to act for the insurance market in this critical piece of indemnity litigation.

Read more in this case alert by Major Loss specialists Adam Chylek and Matthew Foglia.

You can download the update here.