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.
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
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.
Court Dismisses Plaintiff’s COVID-19-Related Suit, Noting Claimed Loss of Use of Properties Is Not Direct Physical Loss Under the Relevant Policy
In this business interruption case resulting from mandatory shutdowns to control COVID-19, a federal court granted the defendant insurer’s motion to dismiss plaintiff’s suit over coverage, finding plaintiff’s claim for loss of income based on state orders restricting use does not meet “direct physical loss” prerequisite.
Court Finds Insurance Policies Are Not Ambiguous as to ‘Physical Loss’ Requirement and Dismisses Plaintiffs’ COVID-19-Related Damages Claims
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court grants the defendant insurance company’s motion to dismiss plaintiffs’ complaint seeking coverage for lost business income under their insurance policies. Plaintiffs operated a hotel and adjacent banquet and catering facility. In ruling against the plaintiffs, the court found the virus did not perceptibly harm the properties and the policies included a virus exclusion that prevented coverage of business losses.
Family Tacos, LLC v. Auto Owners Ins. Co.
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court grants motions of the defendant to dismiss claims of the plaintiff. The plaintiff files claims for coverage under its insurance policy for losses resulting from COVID-19 shutdowns and seeks to establish a class. The court decides that coverage is not provided under the policy because there is no physical loss; the civil authority provision is likewise not effective, and there is a virus exception that is applicable to the case at hand.
MIKMAR, Inc. v. Westfield Ins. Co.
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court grants the defendant insurance company’s motion to dismiss plaintiffs’ complaint seeking coverage for lost business income under their insurance policies. Plaintiffs operated a hotel and adjacent banquet and catering facility. In ruling against the plaintiffs, the court found the virus did not perceptibly harm the properties and the policies included a virus exclusion that prevented coverage of business losses.
Plaintiff Fails to Convince the Court That Physical Loss or Physical Damage Has Occurred; Virus Clause Applies and Defendant’s Motion to Dismiss Is Granted
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court grants motions of the defendant to dismiss claims of the plaintiff. The plaintiff files claims for coverage under its insurance policy for losses resulting from COVID-19 shutdowns and seeks to establish a class. The court decides that coverage is not provided under the policy because there is no physical loss; the civil authority provision is likewise not effective, and there is a virus exception that is applicable to the case at hand.
Torgerson Props. v. Cont’l Cas. Co.
In this business interruption case resulting from mandatory shutdowns to control COVID-19, a federal court granted the defendant insurer’s motion to dismiss plaintiff’s suit over coverage, finding plaintiff’s claim for loss of income based on state orders restricting use does not meet “direct physical loss” prerequisite.
Innovation Ventures, L.L.C. v. Custom Nutrition Labs., L.L.C.
This case involves a consideration of motions by both the plaintiff and the defendant to exclude the testimony of the other party’s expert witness on the basis of Daubert and the Federal Rules of Evidence. The plaintiff’s expert offered testimony on how to calculate lost profits based on the plaintiff’s market share. The defendant’s expert offered testimony as to weaknesses in the plaintiff’s calculations and opinions on damages. The court denied both of these cross-motions.
The District Court Refuses to Throw Out Experts Under Daubert Motions, Citing Differences in Admissibility and Scrutiny Under Cross-Examination
This case involves a consideration of motions by both the plaintiff and the defendant to exclude the testimony of the other party’s expert witness on the basis of Daubert and the Federal Rules of Evidence. The plaintiff’s expert offered testimony on how to calculate lost profits based on the plaintiff’s market share. The defendant’s expert offered testimony as to weaknesses in the plaintiff’s calculations and opinions on damages. The court denied both of these cross-motions.
Court Says Plaintiff Fails to State Plausible Claim to Relief for COVID-19-Related Losses but Allows Amendment of Complaint
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court says the plaintiff, a California restaurant, failed to state plausible claims to relief but gives plaintiff an opportunity to amend its complaint, even if “it does not seem likely” the plaintiff will be able to overcome the complaint’s deficiencies.
Protégé Rest. Partners LLC v. Sentinel Ins. Co.
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court says the plaintiff, a California restaurant, failed to state plausible claims to relief but gives plaintiff an opportunity to amend its complaint, even if “it does not seem likely” the plaintiff will be able to overcome the complaint’s deficiencies.
U.K. and U.S. courts differ on COVID-19 business interruption claims
A recent article in the New York Times reports that the U.K. Supreme Court recently ruled that insurers must cover COVID-19-related losses.
Business Valuation Update Yearbook, 2021 Edition
January 2021 Hardcover, PDF
BVR (editor)
Business Valuation Resources, LLC
Intellectual Property Valuation Case Law Compendium, Fourth Edition
January 2021 Hardcover, PDF (580 pages)
BVR (editor)
Business Valuation Resources, LLC
Prepare now for future business interruption claims due to COVID-19
Now is the time to educate yourself on how to calculate damages from business interruption due to COVID-19, advised Kerrie Merrifield (Axiom Forensics) at the recent NACVA and the CTI’s 2020 Financial Valuation Virtual Conference.
New edition of landmark damages guide now available
The 6th edition of the Comprehensive Guide to Economic Damages has just been released.
AFM Mattress Co. v. Motorists Commercial Mutual Insurance Company
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court grants a motion to dismiss claims of plaintiff. While plaintiff claims losses due to COVID-19, it does not sufficiently move the court to consider the virus exclusion of the policy inapplicable. A motion for a sur-response to espouse an alternative theory was also denied but without prejudice.
In COVID-19 Business Interruption Case, Court Finds Plaintiffs Did Not Argue Physical Loss and Virus Exemption Applies
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court grants a motion to dismiss claims of plaintiff. While plaintiff claims losses due to COVID-19, it does not sufficiently move the court to consider the virus exclusion of the policy inapplicable. A motion for a sur-response to espouse an alternative theory was also denied but without prejudice.
Graspa Consulting v. United Nat’l Ins. Co.
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court dismisses plaintiff’s (a restaurant chain owner/operator) claims against insurance company; plaintiffs did not incur (nor did it assert) physical damages to premises as required by the terms of the insurance policy.
In COVID-19 Business Interruption Case, Court Grants Defendant’s Motion to Dismiss Plaintiff’s Claim for COVID-19-Related Losses
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court dismisses plaintiff’s (a restaurant chain owner/operator) claims against insurance company; plaintiffs did not incur (nor did it assert) physical damages to premises as required by the terms of the insurance policy.
In COVID-19 Business Interruption Case, Court Finds Plaintiff ENT Practice Fails to Allege Any Harm to Insured Property
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court grants a motion to dismiss claims of the plaintiff. While the plaintiff claims losses due to COVID-19 shutdowns, the plaintiff fails to allege any actual harm to the insured property. Key Words: COVID-19, coronavirus, damages, physical loss, insurance, business interruption loss, business interruption ...
S. Fla. Ent Assocs. v. Hartford Fire Ins. Co.
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court grants a motion to dismiss claims of the plaintiff. While the plaintiff claims losses due to COVID-19 shutdowns, the plaintiff fails to allege any actual harm to the insured property.
In COVID-19 Business Interruption Case, Court Finds Plaintiffs Did Not Argue Physical Loss and Virus Exemption Applies
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court granted a motion by the defendant insurance company to dismiss claims of plaintiffs; plaintiffs did not argue that they sustained a physical loss, and coverage would have been denied nevertheless by the virus exemption.
Real Hosp., LLC v. Travelers Cas. Ins. Co. of Am.
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court granted a motion by the defendant insurance company to dismiss claims of plaintiffs; plaintiffs did not argue that they sustained a physical loss, and coverage would have been denied nevertheless by the virus exemption.