Among the recent decisions dismissing complaints for business interruption and civil authority coverage due to closures caused by COVID-19 are Pappy's Barber Shops, Inc. v. Farmers Group, Inc., 2020 U.S. Dist. LEXIS 166808 (S.D. Calif. Sept. 11, 2020) and Sandy Point Dental v. Cincinnati Insurance Co., 2020 U.S. Dist. LEXIS 171979
Civil Authority
California Federal District Court Finds No Business Interruption Coverage for Hawaii Business
By Tred R. Eyerly on
The federal district court in California dismissed the business interruption claim arising from COVID-19 by a Hawaii store chain. Water Sports Kauai v. Fireman's Fund Ins. Co., 2020 U.S. DIst. LEXIS 209547 (N.D. Cal. Nov. 9, 2020).
Sand People closed its twelve stores on three islands six months ago due …
Virus Exclusion Leads to Dismissal of COVID-19 Business Interruption, Civil Authority Claims
By Tred R. Eyerly on
The court dismissed the insured business interruption and civil authority claims due to the policy's virus exclusion. Franklin EWC, Inc. v. Hartford Fin. Servs. Group, 2020 U.S. 174010 (N.D. Calif. Sept. 22, 2020).
Franklin operated the European Wax Center. It was forced to close on March 19, 2020, due to State…
Missouri Federal District Court Again Denies Insurer’s Motion to Dismiss COVID-19 Claim
By Tred R. Eyerly on
Following its earlier decision, the federal district court rejected the insurer's motion to dismiss claims for business interruption due to closure orders caused by COVID-19. Blue Spring Dental Care, LLC v. Owners Ins. Co., 2020 U.S. Dist. LEXIS 172639 (W.D. Mo. Sept. 21, 2020).
Plaintiffs were four dental clinics impacted…
Dentist’s COVID-19 Business Interruption Claim Dismissed Based on Virus Exclusion
By Tred R. Eyerly on
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…
Civil Authority Claim Based on COVID-19 Dismissed
By Tred R. Eyerly on
A California federal district court dismissed the insured restaurant's civil authority claim after being ordered to close due to COVID-19. 10E, LLC v. Travelers Indemnity Co. of Connecticut, et al., 2020 U.S. Dist. LEXIS 156827 (C.D. Calif. Aug. 28, 2020). The decision is here.
Public health restrictions prohibited in-person dining at…
Texas Federal District Court Dismisses COVID-19 Claim
By Tred R. Eyerly on
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…
COVID-19 Claim for Business Interruption Survives Motion to Dismiss
By Tred R. Eyerly on
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…
First Suit Filed for Losses Caused by COVID-19
By Tred R. Eyerly on
Last week, the first lawsuit was filed seeking insurance coverage for business-interruption due to losses caused by COVID-19. The case, Cajun Conti, LLC, et al. v. Certain Underwriters at Lloyd's of London, ,et al., was filed in Louisiana. A New Orleans restaurant, Oceana Grill," seeks a declaratory judgment that its "all risks" policy…