Punters and Club Staff Stand to Lose Thousands of Pounds of Personal Injury Compensation Due to Nightclub Closure

Punters and Club Staff Stand to Lose Thousands of Pounds of Personal Injury Compensation Due to Nightclub Closure

Almost 123 nightclub claims will not be settled and clients stand to lose out on up to £15000 revealed Administrators.
Luminar nightclub was Britain’s biggest nightclub until it was announced that the business was bankrupt 18 months ago. According to administrators 120 club goers doormen and bar staff could potentially lose nearly all of the first £15000 of their claims.
66 of the 79 sites Luminar owned were sold to three industry veterans who saved thousands of jobs at Oceana Lava and Ignite Clubs two months after the business went bust in 2011.
It was discovered that the former owners had left them with massive debts which included a “significant shortfall” of loans of £112 m from three leading banks – Lloyds Banking Group Royal Bank of Scotland and Barclays.
The claims against the club are being handled by insurance brokers JTL but because of the insurance policy the first £15000 of their claim isn’t covered. Previous to the collapse of the club the excess of the claim would have been covered by them now it has to be a non-preferential claim in administration. This means that the claims settlements won’t be as lucrative as first thought.
Head of Employers Liability Michael Long thinks that we will see a lot more claims heading in this direction.
“This is an unfortunate scenario for the Claimant’s which is becoming more common. In order to cut corners and reduce their insurance premiums defendant companies can agree to a higher excess on their policy and in the current economic climate more firms are acting in this way.”
He believes there is a chance the clients will claim even less than they are now expecting.
“Once the firm ceases to trade the Claimants have little chance of recovering the amount of their claim which falls under the excess as they will generally be an unsecured creditor. Unfortunately this situation will continue and is unlikely to change unless a cap is introduced limiting the amount of excess on such policies.”

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