A commentary on insurance coverage issues in Hawaii and beyond
A Florida federal district court denied the insurer's motion to dismiss the insured's COVID-19 business interruption claim despite the policy's virus exclusion. Urogynecology Specialist of Fla. LLC v. Sentinel Ins. Co., 2020 U.S. Dist. LEXIS 184744 (M.D. Fla. Sept. 24, 2020).
Due to emergency orders caused by the COVID-19 pandemic…
The federal district court found there was no diversity based upon joinder of the adjustor and granted the insured's motion for remand. Jada Rest. Grp., LLC v. Acadia Ins. Co., 2020 U.S. Dist. LEXIS 163296 (W.D. Tex. Sept. 8, 2020).
Plaintiff owned several restaurants. It held a business insurance policy…
The federal district court in Michigan dismissed the insured chiropractor's loss of business income claim. Turek Enters. v. State Farm Mut. Auto, Ins. Co., 2020 U.S. Dist. LEXIS 161198 (E.D. Mich. Sept. 3, 2020).
Plaintiff was forced to close its business from March 24 to May 22, 2020, due to…
A Florida dentist could not survive the carrier's motion to dismiss a business interruption claim due to closures for COVID-19. Martinez v. Allied Ins. Co. of Am., 2020 U.S. Dist. LEXIS 165140 (M.D. Fla. Sept. 2, 2020). The court's Order is here.
The dentist alleged that the government mandated…
The insured's claim for business interruption losses due to COVID-19 was dismissed for failure to plead direct physical loss of or damage to property. Malaube LLC v. Greenwich Ins. Co., 2020 U.S. Dist. LEXIS 156027 (S.D. Fla. Aug 26, 2020).
The insured restaurant had to suspend operations when local and…
The federal district court rejected a challenge to its diversity jurisdiction and rejected the insured's attempt to remand the COVID-19 claims back to state court. Vandelay Hospitality Group LP v. Cincinnati Ins. Co., 2020 U.S. Dist. LEXIS 149196 (N.D. Tex. Aug. 18, 2020).
Vandelay purchased a commercial property policy from…
Judge Ezra, formerly on the bench in Hawaii, dismissed a COVID-19 claim pursued by a Texas policy holder. Diesel Barbershop, LLC v. State Farm Lloyds, 2020 U.S. Dist. LEXIS 147276 (W.D. Texas Aug. 13, 2020).
Local and state officials in Texas issued shutdown orders in March 2020 due to the…
In the first noteworthy decision recognizing a possible business interruption claim due to the presence of COVID-19 and the associated closure orders, the insureds survived a motion to dismiss. Studio 417, Inc. v. The Cincinnati Ins. Co., 2020 U.S. Dist. LEXIS 147600 (W.D. Mo. Aug.12, 2020).
The insureds operated hair…
Early decisions are starting to appear where insurers have denied coverage for business interruption after shut downs due to the coronavirus. Most of these early decisions address procedural issues, but a trial court in Michigan recently granted the insurer's motion to dismiss a claim for business interruption due to mandated closures.
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The court found that a nonprofit's donation receipts were included in its revenues for determining its business interruption claim. Alley Theatre v. Hanover Ins. Co., 2020 U.S Dist. LEXIS 52393 (S.D Tex. March 26, 2020).
Alley Theatre was closed due to Hurricane Harvey. It received donations after it was closed.
