A commentary on insurance coverage issues in Hawaii and beyond
The insured furniture retailer survived a motion to dismiss its business interruption claim after government orders caused disruption of the insured's operations due to COVID-19. Susan Spath Hegedus v. Ace Fire Underwriters Ins. Co., 2021 U.S. Dist. LEXIS 88041 (E.D. Pa. May 7, 2021).
Plaintiff operated two locations in California.
A New Hampshire Superior Court granted a hotel chain summary judgment on its suit for coverage due to losses caused by COVID-19. Schleicher & Stebbins Hotels, LLC v. Starr Surplus Lines Ins. Cos., No. 217-2020-00309 (N.H. Super. Ct. June 15, 2021).
Government orders were issued restricting the operation…
Plaintiffs successfully argued against a motion to dismiss by alleging COVID-19 was present on their premises and required repairs and alterations to their properties. Legacy Sports Barbershop LLC v. Cont'l Cas. Co., 2021 U.S. Dist. LEXIS 102545 (N. D. Ill. June 1, 2021).
Plaintiffs operated a barbershop, barbering school and…
The Fifth Circuit affirmed the district court's dismissal of the insured's claim for damage to her home caused by collapse. Stewart v. Metropolitan Lloyds Ins. Co. of Texas, 2021 U.S. App. LEXIS 14221 (5th Girl May 13, 2021).
One evening, the insured was awakened by a loud bang that shook…
Answering a certified question, the South Carolina Supreme Court held that the insurer could calculate actual cash value (ACV) by including an estimate of the depreciation of embedded labor costs. Butler v. Travelers Home & Marine Ins. Co., 2021 S. C. LEXIS 51 (S.C. May 12, 2021).
Two insureds had…
The insured beauty salon's claim for losses caused by shutdown orders due to COVID-19 survived the insurer's motion to dismiss based upon a Communicable Disease endorsement. Treo Salon, Inc. v. West Bend Mut. Ins. Co., 2021 U.S. Dist. LEXIS 88577 (S.D. Ill. May 10, 2021).
The insured's policy included…
The insurer's argument that the insured restaurants' claim for business interruption due to COVID-19 should be dismissed because there was no physical damage to the structure was rejected by the federal district court in Alabama. Serendipitous, LLC v. Cincinnati Ins. Co., 2021 U.S. Dist. LEXIS 86998 (N.D. Ala. May 6, 2021).
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The court found that the insured hair salon and barbershop plausibly alleged an entitlement to coverage for lost business income when the government orders restricted use of the property as intended. Seifert v. IMT Ins. Co., 2021 U.S. Dist. LEXIS 103420 (D. Minn. June 2, 2021).
Plaintiff's business was ordered…
The Federal District Court for the Easter District of Texas rejected the insurer's motion for judgment on the pleadings on the insured's claim for losses due to the coronavirus. Cinemark Holdings, Inc. v. Factory Mut. Ins. Co., 2021 U.S. Dist. LEXIS 90124 (E.D. Tex. May 5, 2021).
Cinemark operated the…
