In Theraplant LLC v. National Fire & Marine Insurance Co., the U.S. District Court for the District of Connecticut denied the insured cannabis cultivator’s claim for business interruption coverage because the insured failed to demonstrate a causal link between its loss and the suspension of its operations. The insured, Theraplant, suffered a loss when a fire at its facility in Watertown destroyed 998 marijuana plants and damaged one of seven flowering rooms. After ... Keep Reading »
Fifth Circuit Concludes That Compliance With Pandemic-Related Shutdown Orders Does Not Constitute “Direct Physical Loss of or Damage to Property” Under Louisiana Law
In the recent decision in Q Clothier New Orleans LLC v. Twin City Fire Insurance Co., the Fifth Circuit Court of Appeals affirmed the dismissal of an insured’s claim for coverage under a property policy for loss arising from compliance with pandemic-related shutdown orders. In concluding that such losses did not fall within the meaning of “direct physical loss of or damage to property” in the policy’s insuring agreement under Louisiana law, the court noted that its ... Keep Reading »
Sixth Circuit Finds No Coverage for Alleged Losses Related to COVID-19
Just like the tidal wave of trial court decisions in favor of insurers in COVID-19 business interruption insurance coverage lawsuits, a similar wave of appellate decisions is now forming. In Dakota Girls LLC v. Philadelphia Indemnity Insurance Co., the Sixth Circuit Court of Appeals, applying Ohio law, affirmed the dismissal of a lawsuit brought by private preschools seeking coverage for alleged COVID-19-related business interruption losses. The Sixth Circuit held there ... Keep Reading »
Eleventh Circuit Finds No Insurance Coverage for Dental Practice’s COVID-19 Business Income Loss Under Georgia Law
In a recent decision, the Eleventh Circuit Court of Appeals ruled that an insured's failure to allege "direct physical loss or damage" to property was fatal to its COVID-19-related business interruption claim. Although addressed ad nauseam by the district courts - with the overwhelming majority finding no coverage - the Eleventh Circuit's unpublished decision appears to be just the second federal appellate opinion on this issue. The other, the Eighth Circuit's decision ... Keep Reading »
Sixth Circuit Determines the Term “Suspension of Operations” in Business Interruption Policy Requires “Complete Shutdown of Business Operations” Under Ohio Law
Hastings Mutual Insurance Co. v. Mengel Dairy Farms LLC arose out of a dispute over coverage between two commercial dairy farmers who manage and care for more than 1,000 cows across farms in Pennsylvania and Ohio, and their business interruption insurer, Hastings Mutual Insurance Co., which insured the farmers' cows against a number of unlikely events - including accidental shooting, attack by wild animals, and - most relevant here - electrocution. In 2018, the ... Keep Reading »
Insurer Prevails in First Substantive Appellate Ruling in COVID-19-Related Insurance Coverage Litigation
In what appears to be the first substantive appellate ruling in COVID-19-related insurance coverage litigation, the Eighth Circuit Court of Appeals in Oral Surgeons, P.C. v. Cincinnati Insurance Co. ruled in favor of the insurer and affirmed the trial court’s order of dismissal under Iowa law. The plaintiff in Oral Surgeons, a dental practice, allegedly sustained financial losses due to the COVID-19 pandemic and related government orders that temporarily restricted ... Keep Reading »
Consistent With Nationwide Trend, Recent Decisions Applying Louisiana Law Find COVID-19 Does Not Cause Physical Loss or Damage
Consistent with the majority of decisions in courts across the country, a number of Louisiana state and federal courts have recently held that COVID-19 does not cause physical loss or damage to property as required for coverage under most first-party property policies. In a summary judgment decision issued from the bench in Nite, Nite LLC v. Certain Underwriters at Lloyd’s, London, a Louisiana state court considered whether the state government’s COVID-19 shutdown ... Keep Reading »
No More Runway for Florida COVID-19 Insurance Coverage Lawsuit
Judge Raag Singhal in the U.S. District Court for the Southern District of Florida recently dismissed with prejudice a COVID-19 business interruption insurance coverage lawsuit brought by the owners of Anthony's Runway 84 - a popular restaurant near the Fort Lauderdale airport. As this blog has reported previously, there has been a tidal wave of rulings in favor of insurers in COVID-19 business interruption insurance coverage lawsuits. With Judge Singhal's dismissal with ... Keep Reading »
Florida Judges Find COVID-19 Does Not Cause Direct Physical Loss or Damage
The tidal wave of favorable rulings for insurers in COVID-19 business interruption insurance coverage lawsuits that started in 2020 is continuing in 2021. As this blog has previously explained, commercial property insurance policies generally require “direct physical loss of or damage to” the insured property to trigger business interruption coverage. In some COVID-19 business interruption insurance lawsuits, policyholders have alleged that the presence of COVID-19 on ... Keep Reading »
Eleventh Circuit Finds No “Direct Physical Loss” to Dust-Covered Restaurant that Merely Required Cleaning
As the COVID-19 pandemic continues, so does the deluge of litigation stemming from property insurers' denials of COVID-19 business interruption claims. Much of the debate between carriers and policyholders concerns whether the coronavirus or the COVID-19 shutdown orders caused "direct physical loss of or damage to" the insured's property. The Eleventh Circuit's recent opinion in Mama Jo's Inc. v. Sparta Insurance Co., while not related to COVID-19, arguably supports the ... Keep Reading »