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.
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.
U.S. Court Allows Movie Chain’s COVID Business Interruption Suit Against FM Global
A federal judge in Sherman, Texas on Wednesday ruled against insurer FM Global 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.
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.