By Alice Uribe
SYDNEY–The owner of Sydney’s casino wasn’t able to persuade an Australian court to back up a claim on its business-interruption insurance policy for losses resulting from a government-ordered shutdown in response to the pandemic.
The federal court rejected Star Entertainment Group Ltd.’s argument that its business-interruption policy is valid because the government forced it to shut down and found that the company’s special-risks policy in this instance doesn’t cover economic loss.
The policies Star had been seeking to make claims against included a 4 billion Australian dollar (around $3 billion) limit on the Sydney casino, A$1.75 billion for a Gold Coast casino, and A$1.43 billion for a casino in Brisbane.
“The Star notes the decision from Chief Justice Allsop this afternoon. We are reviewing the judgment and considering our position,” said a Star spokesman.
Star has 28 days to appeal the decision of Chief Justice Allsop, who at the same time ordered the parties to make further submissions in relation to claims around the spoilage of goods within 14 days.
Analysts from Macquarie in October said there was a strong chance Chubb Insurance Australia Ltd., along with other insurers would win the business-interruption case.
Write to Alice Uribe at alice.uribe@wsj.com
