Notice
HDI Global Specialty SE and Grenville Mutual Insurance Company
Business Interruption Insurance Class Action
Notice of Certification, Judgment and Opt-Out Deadline
Read this notice carefully as it may affect your legal rights
THIS NOTICE IS TO:
All natural and legal persons engaged in the operation of bars in Canada, except for those in the province of Québec, that:
(i) were insured under a multi-peril property loss insurance policy jointly underwritten by HDI Global Specialty SE and Grenville Mutual Insurance Company (the “Policy”);
(ii) on or before the date of this order, made a claim under the Policy for business interruption losses due to:
(A) the actual or suspected infection of staff , customers or other persons with the SARS CoV-2 virus or its variants at the insured premises;
(B) the actual or suspected presence of the SARS CoV-2 virus or its variants on the insured premises; or
(C) the order of a civil authority regarding the SARS CoV-2 virus or its variants; and
(iii) were denied insurance coverage for those losses by the Insurer Defendants.
(the “Class” and the “Class Members”)
This case has been certified as a class action, a judgement has been entered in favor of the Defendants, and you can exclude yourself from this lawsuit. This notice contains important details about these matters.
IMPORTANT DEADLINE
Opt-Out Deadline (for Class Members to exclude themselves from the Action) March 1, 2025
THE NATURE OF THE CLAIMS ASSERTED, CERTIFICATION AND JUDGMENT IN FAVOUR OF THE DEFENDANTS
On June 3, 2020, Pegasus on Church Inc. (the “Plaintiff”) filed a proposed class action (the “Action”) against HDI Global Specialty SE and Grenville Mutual Insurance Company (the “Defendants”). The lawyers representing the Plaintiff are Cambridge LLP and Kalloghlian Myers LLP (“Class Counsel”).
The Plaintiff alleges that by failing to cover the business interruption losses incurred by the Class Members due to the COVID-19 pandemic, the Defendants breached the terms of the Policies. The Defendants deny these allegations.
The Action was certified as a class proceeding on December 15, 2021.
The Action was one of several lawsuits alleging that defendant insurers improperly failed to cover business interruption losses due to the COVID-19 pandemic. In one of these lawsuits, Workman Optometry Professional Corporation v. Certas Home and Auto Insurance Company (the “Workman Action”), a class action about the interpretation of a number of insurance policies, had a trial to decide the following common issues, both of which were answered “No” by the Court:
- Common Issue 1: Can the presence of the SARS-CoV-2 virus cause physical loss or damage to property within the meaning of the business interruption provisions of the insurers’ policies; and
- Common Issue 2: Can an order of a civil authority in respect of business activities that was made due to the SARS-CoV-2 virus cause physical loss or damage to property within the meaning of the business interruption provisions of the insurers’ policies.
The plaintiff in the Workman Action was not successful at trial, and on June 14, 2024, the Court of Appeal for Ontario dismissed the plaintiff’s appeal. The Court of Appeal in the Workman Action found that the insurance policies did not cover business interruption losses incurred by the members of the class due to the COVID-19 pandemic.
The Court of Appeal’s conclusion in the Workman Action also applies to the allegations in this Action. For this reason, the Plaintiff has agreed to a judgment in the Action in favour of the Defendants. This means that the Action has concluded, and the Defendants were successful. Unless you exclude yourself from the Action by opting out in accordance with the instructions below, you will be bound by the resolution of the Action.
EXCLUDING YOURSELF FROM THIS LAWSUIT
To exclude yourself from the resolution of the Action, you must opt out by sending an email or letter to Class Counsel providing your name, insurance policy number, and stating you wish to be excluded from this proceeding. You must send your opt out request by email to Doug Elliott [email protected] or by regular mail to:
Douglas Elliott
Cambridge LLP
333 Adelaide St. West
4th Floor
Toronto, Ontario M5V 1R5
If you have any questions, you can contact your lawyers at:
Douglas Elliot: [email protected] or 416-477-70007