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December 29, 2020
On Monday, Judge Beth Freeman issued an opinion in a case addressing business loss insurance’s limitations regarding virus exclusion clauses and the framing of claims to avoid these limits. This suit was decided in the Northern District of California.
In the suit, the dental practice of Dr. Karen Trinh, DDS, filed suit against State Farm after filing an unsuccessful business interruption claim against its policy. The second amended complaint alleged seven causes of action, including breach of contract due to unprocessed claims regarding accidental direct physical loss and loss of income under the policy, breach of covenant of good faith and fair dealing, bad faith denial, declaratory relief, unjust enrichment, unfair competition, and injunctive relief. Each of these claims was premised on COVID-19 and the limitations placed on businesses due to government stay-at-home orders. While the plaintiff “creatively attempted to reframe the cause