Texas Judge Refuses to Dismiss Theater Chain's COVID Lawsuit

Texas Judge Refuses to Dismiss Theater Chain’s COVID Lawsuit
A federal judge in Sherman, Texas on May 5 ruled against an insurer that sought to dismiss a $500 million COVID-19 business interruption lawsuit by the nation’s third-largest chain of movie theaters.
The decision broke a month’s-long losing streak for policyholders seeking cover for income lost because of pandemic-related restrictions.
U.S. District Court Judge Amos L. Mazzant found that Cinemark Holdings had aptly pleaded that the coronavirus was actually present on its properties and caused damages, noting that more than 1,700 of its employees had tested positive for COVID-19.
Mazzant said in his opinion that the facts were very different in another COVID-19 claim that was dismissed by the Eastern District of Texas in March, where property owner Selery Fulfillment made no allegation that the virus was actually present.

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