Consistent with its prior decision in Marina Pacific Hotel and Suites, LLC v. Fireman's Fund Ins. Co., 81 Cal. App. 5th 96 (2022), the California Court of Appeal again reversed the lower court's dismissal by demurrer of the insured's business interruption claim due to the presence of COVID-19. Shusha, Inc. v. Century-Nat'l
Business Interruption
COVID-19 Claim Can be Amended To Consider Endorsements
By Tred R. Eyerly on
Although the court agreed the insured's complaint did not trigger coverage under provisions for business income losses and business access prevention by civil authority, the policy contained other provisions under which the trial court should have granted leave to amend. Boffo Cinemas, LLC v. Fireman's Fund Ins. Co., 2023 Cal App. Unpub.
Pennsylvania Superior Court Affirms Finding of Direct Physical Loss in COVID-19 Claim
By Tred R. Eyerly on
After the Court of Common Pleas granted summary judgment to the insured on its business interruption claim, the Pennsylvania Superior Court affirmed. Ungarean v. CNA & Valley Forge Ins. Co., 2022 Pa. Super. LEXIS 467 (Pa. Super. Ct. Nov. 30, 2022).
Timothy Ungarean operated a dental practice. As a result…
Motion to Dismiss COVID Claim Granted in Part, Denied in Part
By Tred R. Eyerly on
The insurer's motion to dismiss the insured's claim for business losses due to COVID-19 was granted in part, denied in part. SRL v Zurich Am. Ins Co., 2022 U.S. Dist. LEXIS 210058 (N.D. Ill. Nov. 21, 2022).
Excelsior owned and managed the Westin Excelsior Rome, a luxury hotel in Rome.
Denial of Insurer’s Motion to Dismiss COVID-19 Case Affirmed
By Tred R. Eyerly on
The Appellate Division of the Supreme Court of New York affirmed the lower court's denial of the insurers motion to dismiss COVID-19 claims. Tina Turner Musical LLC v. Chubb Ins. Co. of Europe SE, 2022 N.Y. App. Div. LEXIS 6758 (N.Y. App. Div. Dec. 6, 2022). The case is here.
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Insured Granted Right to Amend COVID-19 Complaint
By Tred R. Eyerly on
The California Court of Appeal determined the insured's complaint was properly dismissed, but the lower court erred in not granting leave to amend. Tarrar Enterprises, Inc. v. Associated Indemn. Corp., 2022 Cal. App. LEXIS 811 (Cal. Ct. App. Sept. 22, 2022).
Tarrar Enterprieses, Inc. operated a utility consultnat business. The…
COVID-19, Business Interruption Claim Survives Motion for Judgment on the Pleadings in Vermont
By Tred R. Eyerly on
The Vermont Supreme Court found that the insured's complaint alleging business interruption due to COVID-19 could survive the insurer's motion for judgment on the pleadings. Huntington Ingall's Industries v. Ace Am. Ins. Co., 2022 Vt. LEXIS 47 (Sept. 23, 2022).
In March 2020, the Undersecretary of Defense told the insured…
COVID-19, Business Interruption Claim Triggered Under Civil Authority Provision
By Tred R. Eyerly on
The California Court of Appeal found that the insured alleged facts sufficient to trigger coverage under a civil authority endorsement after government shutdown orders due to COVID-19 caused the insured to close its business. Butter Nails & Waxing v. Underwriters at Lloyd's, 2022 Cal. App. Unpub. LEXIS 5264 (Cal. Ct. App. Aug.
South Carolina Supreme Court Finds Presence of COVID-19 is Not “Direct Physical Loss or Damage”
By Tred R. Eyerly on
Answering a certified question, the South Carolina Supreme Court determined that the presence of COVID-19 and/or government shutdown orders did not constitute "direct physical loss or damage" to property. Sullivan Mgmt. v. Fireman's Fund Ins. Co., 2022 S.C. LEXIS 90 (S.C. Sup. Ct. Aug. 10, 2022).
Sullivan Management, LLC operated…
Louisiana Court of Appeals Denies Insurer’s Motion for Rehearing on COVID-19 Claim
By Tred R. Eyerly on
After reversing the trial court's denial of the insured's petition for declaratory judgment on a business interruption claim, the Louisiana Court of Appeals denied the insurer's motion for rehearing en banc. Cajun Conti LLC v. Certain Underwriters at Lloyd's, 2022 La. App. LEXIS 1278 (La. Ct. App. Aug. 8, 2022).
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