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Coronavirus Litigation: The Week In Review

Two New Jersey universities have escaped claims that they owe students tuition and refunds for switching to virtual instruction during the pandemic, a top New York judge is among those opposing landlords trying to overturn statewide eviction protections, and a Southwest Airlines flight attendant seeks to preserve her suit alleging the airline's failure to adhere to coronavirus safety protocols caused her to contract the virus and infect her late husband.

Md College s Virus Coverage Suit Sent To State Court

A Maryland college's claims against Continental Casualty Co. and an insurance broker are better suited for state court, a federal judge ruled Wednesday, sending back the case over the college's losses tied to government shutdown orders during the coronavirus pandemic.

COVID-19 Physically Present is Sufficient in Business Interruption Suit

Allegations That COVID-19 Was Physically Present and Altered Property are Sufficient to Sustain COVID-19 Business Interruption Suit Thursday, May 6, 2021 On Wednesday, a federal judge in Texas denied Factory Mutual’s Rule 12(c) motion for judgment on the pleadings, finding that the plaintiffs adequately alleged that the presence of COVID-19 on their property caused covered physical loss or damage in the case of  Cinemark Holdings, Inc. v. Factory Mutual Insurance Co., No. 4:21-CV-00011 (E.D. Tex. May 5, 2021). This is the third COVID-19-related business interruption decision from Judge Amos Mazzant since March, but the first in favor of a policyholder. Taken together, the three decisions have two key takeaways and provide a roadmap for policyholders in all jurisdictions.

Business, Interrupted: Insurance claims often denied for pandemic-related business closures

By Michelle Tuccitto Sullo After Lenny & Joe’s Fish Tale restaurant in New Haven sued its insurance provider for refusing to pay for business losses related to the coronavirus pandemic shutdown, a federal judge dismissed the case within just six months. U.S. District Court Judge Michael Shea in December granted AmGUARD Insurance Co.’s motion to dismiss the case, concluding the restaurant’s insurance policy’s virus exclusion meant any losses due to the pandemic weren’t covered. Like Lenny & Joe’s, an array of businesses, from restaurants to manufacturers and medical providers, have experienced pandemic-related losses in the past year, and several have turned to the courts when their insurance carriers denied coverage.

Coffee Shop Chain Sues Insurers Over Business Losses From Pandemic

By City News Service Mar 15, 2021 LOS ANGELES (CNS) - The parent company of Coffee Bean & Tea Leaf is suing an insurance company and its subsidiary for allegedly breaching a contract to compensate the coffee shop chain for business income losses suffered during the coronavirus pandemic. International Coffee & Tea LLC brought the complaint Friday in Los Angeles Superior Court against CNA Financial Corp. and its subsidiary, Continental Casualty Co., seeking unspecified compensatory and punitive damages as well as a judicial declaration of the rights and duties of the parties under the policy. “Like other retailers and restaurants, which depend upon high-volume foot traffic and a welcoming, enticing environment to attract in-store visits, Coffee Bean & Tea Leaf shops suffered enormous losses and a catastrophic drop-off in sales as a result of the COVID-19 pandemic and the resulting inability to conduct normal business beginning in or about March 2020, the suit states.

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