Covid

Covid-19 Closures and the Reasonable Expectations of a Commercial Insured is still undecided in Pennsylvania (PA)

COVID-19 related insurance litigation has often left insurers with more questions than answers. In Brown’s Gym, Inc. v. The Cincinnati Ins. Co., another open question of law in Pennsylvania is being looked at in relation to such a COVID-19 initiated case. Here, the Court of Common Pleas of Pennsylvania in Lackawanna County recently ruled that a case by a commercial insured looking to sue...Read More

COVID Court Ruling (NY)

Adding to the quickly growing body of COVID-related insurance case law, a New York federal judge recently held that an art gallery could not recover financial losses due to government-mandated closures, finding that there was no “direct physical loss” as required by the policy. The Guy Hepner art gallery in Chelsea had a policy with Sentinel Insurance Company which contained a “business...Read More

COVID-19 Relief and Liability Provisions

The latest round of federal COVID-19 relief fails to cover one major sticking point in the negotiations: liability. The GOP spent months attempting to integrate a provision limiting liability for COVID-related lawsuits into the relief package, insisting that a one-year statute of limitations and limited types of permissible claims were the only way to truly protect businesses and other...Read More

Three Strikes and You’re Out on Coverage: COVID-19 Business Interruption Claim Fails (PA)

Of course, COVID-19 and accompanying shutdown orders impact on business interruption claims are still among the most pressing issues facing the courts.  In Toppers Salon & Health Spa Inc v Travelers Property Casualty Company of America, the Eastern District of Pennsylvania has provided one of the most definitive answers on the issue with its rejection of an insured’s business interruption...Read More

Business Interruption Claims in the Covid-19 Era: The Trend Continues

Earlier this week, a federal judge in the U.S. District Court for the Southern District of Florida dismissed a lawsuit seeking coverage for losses associated with the COVID-19 pandemic. In El Novillo Restaurant, et al. v. Certain Underwriters at Lloyd’s, London, et al., the plaintiffs filed suit seeking coverage for business income losses due to Covid-19.  In response to the amended complaint,...Read More

District of New Jersey Grants Insurer’s Motion to Dismiss, Finding Virus Exclusion Precluded Coverage

In N&S Restaurant LLC v. Cumberland Mutual Fire Insurance Company, the District of New Jersey ruled upon whether coverage under a businessowners policy for Covid-19 closures was precluded by the policy’s virus exclusion. By way of background, Plaintiff N&S Restaurant had a businessowners policy (“Policy”) with Defendant Cumberland Mutual. Due to the Covid-19 pandemic, an Executive...Read More

North Carolina Superior Court First to Hold Covid Closure Equals Physical Loss

As the first wave of litigation over insurance company denials of business interruption coverage to restaurants and other businesses has begun to result in adjudicated decisions, those denials have been upheld, largely based upon a consistent interpretation that a mandated closure is not equivalent to an actual, direct physical loss or damage, as required to trigger coverage. However, in...Read More

Don’t Demonize The Landlord (NY)

COVID-19 has frustrated the restaurant industry causing many to close its doors and close prominent businesses and neighborhood staples. But who is to blame? There are a growing number of cases arguing whether parties can avoid their contractual obligation due to the pandemic. A recent Decision in Supreme Court, Kings County Commercial Division, made some ground in this argument when it...Read More

Multidistrict Litigation For COVID Claims To Come?

The most significant insurance issue of the Covid-19 pandemic has been insureds’ claims for business interruption coverage resulting from the forced closure of their businesses around the country. This issue alone has sparked hundreds of lawsuits spanning nearly every jurisdiction in the country. After arguments last week, the Judicial Panel of Multidistrict Litigation (the “JPMDL”) is now set...Read More

Recent Litigation Tracking Indicates Early Wins For Insurers In COVID Cases

Recent court decisions on “business interruption” coverage claims related to COVID-19 seem to be tentatively favoring insurers with respect to claims for lost income during the COVID-19 pandemic. Several jurisdictions have ruled for insurance companies, including state courts in California, Michigan and the District of Columbia, as well as in federal courts in Texas and California....Read More