Clarence Hotel drops business interruption cover case with insurance broker

Press Up-owned hotel had sued Arachas Corporate Brokers

An action against an insurance broker over business interruption cover has been settled in the Commercial Court.

The operators of Dublin's Clarence Hotel, Brushfield Ltd – which is part of the Press Up Entertainment Group – had sued Arachas Corporate Brokers Ltd which arranged the hotel's insurance policy with Axa.

Last April, Mr Justice Denis McDonald dismissed the case against Axa. He rejected claims by Brushfield that it was entitled to be compensated for losses due to the lockdowns under its “enterprise” insurance policy with Axa.

The judge said he had not been persuaded that cover was available under the specific terms of the Axa policy for losses resulting from the closure of the hotel and its Octagon bar in the wake of Government advice on Covid in March 2020.


The case against Arachas had yet to be heard.

On Thursday, Paul McGarry SC, for Brushfield, said the proceedings had been compromised against Arachas and he was seeking an order striking out the case and vacating previous costs and directions orders.

Mr McGarry said all allegations of wrongdoing and professional negligence against Arachas were being withdrawn. The settlement did not involve any payment being made by either party, he said.

Mr Justice McDonald welcomed the settlement and made an order striking out all proceedings.


In a statement afterwards, Arachas chief executive Conor Brennan said his company was proud of its business and reputation.

This was underlined by the successful outcome of the case which had been a “very challenging and stressful time, not just for us but for Irish brokers around this country, all of us trying to deal with an unprecedented and rapidly changing crisis”.

He said Arachas had “worked incredibly hard supporting Irish businesses through the pandemic”.

It would continue to work closely with Government, insurers, business representative groups and, most importantly, with its clients to secure the best possible outcome even in very challenging circumstances, he said.