Welsh pub wins 'historic' Covid compensation payout after being forced to close in lockdown
The owners of Why Not Bar have won millions in the payout
PA/GOOGLE
A bar in Wales forced to shut over the Covid lockdown has won an "historic" insurance payout for losses sustained throughout the pandemic.
The Why Not Bar in Aberystwyth, on the country's west coast, had shut its doors in March 2020 as Covid restrictions came into force across Britain.
Back then, owners Mark and Rhian Phillips were told there was "nothing they could do" about their lockdown losses by their insurers, despite having "business interruption loss" coverage for their venue.
Speaking of the legal battle, Mark said: "We have lost loved ones, struggled financially, and my wife has suffered significant anxiety and distress because of this ordeal."
Why Not Bar has since rebranded to SY23
The Phillips couple tabled a case against said insurers - and won a decision in the High Court last June, which has now been upheld at the Court of Appeal.
Now, the Why Not Bar owners can claim on losses worth some £1.5million.
Mark said: "I'm a working class lad who's worked my whole life - the Court of Appeal is not just for me, it's for everybody else.
"This is not just a win for our business, but another step forward in providing a lifeline for all those businesses affected.
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Mark Phillips has hailed the Court of Appeal ruling as a "tremendous victory"
PA
"The emotional strain, psychological toll and financial distress caused by our insurers ongoing refusal to pay compensation cannot be overstated."
He has hailed the decision as a "tremendous victory" for thousands of pub and bar owners across the UK covered for business interruption during the pandemic.
And his praise has been echoed by lawyers who have battled insurers throughout the years-long case.
Law firm Hugh James, which represented the Phillipses and five other clients, said they suffered "devastating" financial losses during Covid, and has now urged insurance companies to compensate those affected.
The Why Not Bar was forced to close in 2020 - but its owners have bounced back
Erich Kurtz, a senior associate at the firm, said: "It's been around three years of sustained hard work and stress for both Mark and Rhian."
Kurtz called the ruling - for Why Not Bar, alongside five restaurant, catering, fitness and hairdressing businesses, as well as the London International Exhibition Centre - an "historic" victory.
He said insurance firms had argued their policies had never been intended to cover a "nationwide pandemic" - which the High Court dismissed.
Since the pandemic, the couple have run other businesses from the same premises including SY23, Y Sgwar, The Courtyard and Yoko's.
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