On Tuesday 16 June The Commercial Court made the next order in the FCA’s Test Case relating to Business Interruption Insurance.

The remote hearing lasted all day. It was live-streamed. It is intended that all of the interim hearings and the final hearing itself will be live-streamed. If you did want to watch the 16 June hearing you can view it here.

The hearing, which is known as a Case Management Conference, was dealt with by Mr Justice Butcher. The Court made an order largely in line with what the FCA and the defendant insurance companies had already agreed but there were some differences which the Court will decide at the next hearing.

Key points are as follows:

The insurance companies must file their response to the application by 23 June.

The next procedural Court hearing will be on 26 June.

The hearing on 26 June will also be live-streamed. 

The FCA can serve a Response to the Insurer's defences by 3 July.

The trial is to commence on 20 July and is expected to last 8 days. Prior to the hearing commencing the Judges have estimated a minimum of 3 days reading all of the statements of case from the FCA and each of the 8 insurance companies together with all of the other evidence the Court will be considering.

Will each of the defendant insurance companies have to serve their own response or will there be one response for all insurers?

Each of the insurance companies will have to serve their own individual response because they will put their case based on the particular wording of their insurance policy.

How will the Court deal with the different wording of the 8 defendant insurance companies policies?

The FCA has set out in their claim wording from policies of each of the defendant insurance companies and is asking the Court to make declarations which, if the Court makes, will effectively mean that that insurance company should pay losses claimed by their policyholders under the wording of the policy.

What happens next?

There will be another procedural Court hearing on Friday 26 June before the same Judge, Mr Justice Butcher, and possibly one other Judge. The Court will then give further directions for steps which have to be taken before the trial.

We will publish another bulletin after 23 June when the insurance companies have served their responses to the claim.