Seven Stories – 06/05/2020

Nicole Wise, Alex Woodruff

UK government trials contact-tracing app on the Isle of Wight

In the fight against coronavirus, the British health secretary, Matt Hancock, announced that the ‘test, track and trace’ trial will be piloted on the Isle of Wight from 6 May. The mobile phone app will use Bluetooth technology to track when users come into close contact. Users are relied upon to notify the app themselves if they have symptoms of Covid-19. A central server will then send an alert and advice to any users who have been in recent proximity with the symptomatic person. The decision to implement digital tracking is shrouded in concerns over privacy risk, but Hancock claims there is ‘huge enthusiasm’ for the new app.

Small businesses rush to coronavirus ‘bounce-back loan scheme’ (BBLS)

UK banks and credit lenders have warned that they may struggle to cope with the burgeoning demand for small-business loans of up to £50,000 at a reduced 2.5% rate. In the first week of the easier fast-track BBLS scheme (launched on 30 April), over 110,000 applications have been submitted, rapidly surpassing the 52,807 applications for the existing coronavirus business interruption loan scheme (CBILS) which was launched on 23 March. Despite warnings from banks that they are functioning at over-capacity, the government continue to pressure them to process loan requests quicker and keep small businesses afloat, under the promise that, should businesses default, the treasury will foot the bill.

Iran to slash four zeros in currency reform

The Iranian parliament has voted to abandon the current ‘rial’ currency and make the ‘toman’ the new official currency of Iran. The move seeks to put an end to the five decades of rampant inflation and currency devaluation caused largely by US sanctions and unstable oil prices. Iranians have long used the toman in daily purchases and domestic business dealings and the government hopes that making it the official denomination will invigorate the sense of national unity. Critics have lamented the timing of the move, claiming that, amidst the coronavirus pandemic, this will bring even more instability to the region.

New rent protections for the UK high street

The British business secretary, Alok Sharma, has announced that retailers and other companies will have increased rent protection amidst the coronavirus pandemic, and instead will be asked to pay what they can. An important protection that came into force at the end of April included the prevention of aggressive forms of rent recovery under the Commercial Rent Arrears Recovery process, unless landlords are owed over 90 days of unpaid rent. The government first intervened through the Coronavirus Act which came into force at the end of March and prevented the loss of commercial leases in the event of non-payment of rent, in effect halting eviction until the end of June.

U.S. Supreme Court proceedings heard via telephone for the first time

Arguments relayed for the first time ever via telephone in the US Supreme Court went relatively smoothly and could be streamed live from across the globe. The case also saw another relatively ground-breaking procedural shift, which saw Supreme Court Justices asking questions in order of seniority. The change, which has come about in response to Covid-19, will impact a number of cases over the next few weeks, including Donald Trump’s attempt to shield tax and financial records, as well as the topic of ‘faithless electors,’ - Electoral College members who cast ballots for candidates other than those that win the most popular vote in their state.

£5.4 million in emergency funding for law centres

A UK government justice minister, Alex Chalk, announced this week that £5.4 million will be given to law centres and other similar advice centres to help them through the pandemic, through boosting ‘remote capability,’ as they play a vital role in access to justice and solving legal problems. Chair of the Law Centres Network, Helen Rogers, welcomed the emergency government funding, recognising the uneven impact of the pandemic which highlights the inequality in society. Other firms, including thousands of high street firms, may close within the next six months research suggests, due to cash flow and income problems.

Employers face prospect of coronavirus litigation for inadequate health and safety measures

Employers could face a rise in litigation under UK employment law following the coronavirus pandemic, lawyers and trade unions have stated, due to deploying inadequate measures to protect employees from the spread of the virus. Potential claims could include constructive dismissal claims, if it is found employers have breached the ‘trust and confidence’, they owe to workers, and negligence claims on the grounds of health and safety if they catch the virus upon returning to work. One potential obstacle for claimants that may protect employers is the difficulty of proving that they caught the virus in the workplace; this would likely require a collective/class action claim from impacted employees.