In Rare Policyholder Win, Texas Judge Refuses to Dismiss Theater Chain’s COVID Lawsuit
A federal judge in Sherman, Texas on Wednesday 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.