ORIENT-EXPRESS HOTELS LTD V ASSICURAZIONIE GENERALI SA

[2010] EWHC 1186 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Hamblen, 27 May 2010

Insurance (business interruption) - Hurricane causing physical damage to hotel - Whether business interruption loss caused by hurricane - Whether damage to locality to be taken into account

OEH operated the Windsor Court Hotel in New Orleans. In the autumn of 2005 New Orleans was hit by Hurricane Katrina and Hurricane Rita. A state of emergency was declared and a curfew was imposed on 27 August 2005: the curfew was not lifted until the end of September 2005. The hotel suffered significant physical damage and was closed throughout September and October 2005. It reopened on 1 November 2005, but its services and amenities were not at that time fully functional. OEH had a combined property damage and business interruption policy, with business interruption cover becoming available only where it was caused by physical damage to the hotel. Two issues arose in the present appeal from an arbitral award under section 69 of the Arbitration Act 1996.