we were not entitled to a refund
That can't be true. A business class ticket should be fully refundable, and if you are not accommodated in business class you are entitled to a refund between the business class fare and full economy fare. Now, it's possible that by paying the full economy fare you're entitled to business class seating, but if not available then you are not entitled to refund because you actually paid economy class fare. This is also true of some US domestic airlines. Pay full economy class and book (limited number ) available First Class seat and you pay the same price, whether traveling in F class cabin or coach cabin.
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