Court Rejects Plaintiffs’ Argument That Policy Covered Loss of Full Use of Premises Due to COVID-19-Related Shutdowns and Grants Defendant’s Motion to Dismiss

BVLaw
Court Case Digests
February 19, 2021
5812 Eating and Drinking Places
722511 Full-Service Restaurants
economic damages & lost profits
loss causation, coronavirus, COVID-19, business interruption, income, physical loss, civil authority

Brunswick Panini’s v. Zurich Am. Ins. Co.
2021 U.S. Dist. LEXIS 31110; 2021 WL 663675
US
Federal Court
Ohio
United States District Court
Boyko

Summary

In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court granted defendant insurer’s motion to dismiss the plaintiffs’ claims. The court found the plaintiffs, which operated restaurant and bar facilities in Ohio but had to suspend operations because of the pandemic, did not meet the precondition of “direct physical loss of or damage to” the covered property requirement. Further, the microorganism exclusion precluded coverage of losses.

See Also

Brunswick Panini’s v. Zurich Am. Ins. Co.

In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court granted defendant insurer’s motion to dismiss the plaintiffs’ claims. The court found the plaintiffs, which operated restaurant and bar facilities in Ohio but had to suspend operations because of the pandemic, did not meet the precondition of “direct physical loss of or damage to” the covered property requirement. Further, the microorganism exclusion precluded coverage of losses.