11/19/21
By: Marc J. Shrake and Mary-Kate Planchet In the first COVID-19 Business Interruption case to reach the appellate level in California, the court used long-standing insurance principles to resolve the first-impression issue, finding against coverage. The decision in The Inns By The Sea v. California Mut. Ins. Co. (Fourth District, First Division, Case No. D079036)…
It May Be Legal, But It’s Not Civil
4/13/21
By: Michael Weinberg A recent decision in the matter of Legal Sea Foods, LLC v. Strathmore Insurance Company, USDC (Mass) further addressed coverage for business income and extra expense losses caused by both state and local governments nationwide orders (the “Orders”) in response to the Covid 19 pandemic. Legal Seafoods is a chain which operates 32 restaurants…
4/8/21
By: Kevin G. Kenneally, Esq. and William E. Gildea, Esq. The embattled NY Governor Andrew Cuomo backtracked on his signature pandemic legislation that recently unraveled and marred his reputation, as allegations of cronyism and endangering the state’s most vulnerable elderly population were widely reported. This repeal follows disclosure of investigations into the Cuomo administration’s directive…
California Assembly Bill 1552 – Near Miss or Cautionary Tale for Insurers?
11/11/20
By: Ryan Greenspan As fear of the novel coronavirus and COVID-19 continues to grip the world, an array of government rules, restrictions, and guidelines have been imposed. Some businesses have been operating at a limited capacity and some have closed outright. In March of this year, California’s governor issued one of the strictest orders in the…
No Entry Without a Mask: Coverage for Discrimination?
10/26/20
By: Mallory Ball More businesses are requiring masks or face coverings to protect their patrons and employees from COVID-19. Unfortunately, with the face-covering requirements, businesses are vulnerable to liability claims from patrons alleging they have been discriminated against by requiring them to wear a face covering. The allegations of discrimination may also include humiliation or mental injury…
FMG Attorneys Assist Prevailing Insurer in a COVID-19 Business Loss Claim
10/8/20
FMG attorneys Phil Savrin and Shawn Bingham secured a favorable outcome for Allied Insurance Company of America who was sued for rejecting a claim for lost business income after the insured shuttered its restaurant during the COVID-19 pandemic. The insured, a Cajun restaurant in the Atlanta area, decided to close its dining room after the governor issued an Executive Order…
Statute of Limitations Tolled in California Amid Pandemic
8/3/20
By: Matthew Jones In response to the COVID-19 pandemic, California’s Governor Gavin Newsom issued a “state of emergency” for the entire State. In response, the California Judicial Council adopted several Emergency Rules to implement during the pandemic. In particular, Rule 9 states that all statute of limitations for civil causes of action are tolled from April 6,…
6/18/20
By: Anastasia Osbrink According to forecasters with the Climate Prediction Center at the National Oceanic and Atmospheric Administration (“NOAA”), a division of the National Weather Service, the 2020 hurricane season has a 60% chance of being an “above-normal season.” (See https://www.noaa.gov/media-release/busy-atlantic-hurricane-season-predicted-for-2020.) This forecast is based on several factors. According to the NOAA, there are “warmer-than-average…
A Tale of Two Cities: COVID-19 Business Interruption Coverage in New York and Paris
6/5/20
By: Isis Miranda Two sides of the pond. Two different outcomes. In New York, Social Life Magazine, Inc. sought immediate relief from the court in a case against its insurer, Sentinel Insurance Company, Limited, for business interruption coverage losses it sustained due to the closure of its business as a result of Governor Andrew Cuomo’s…
Insurers Brace For “Huge” Volume of Business Interruption Suits
5/4/20
By: Kevin Kenneally, Michael Giunta & Janet Barringer “The amount of litigation that is going to be generated…is gonna be huge.” – Warren Buffett At the annual meeting of Berkshire Hathaway in Omaha, Nebraska this past weekend, company chairman Warren Buffett said the insurance industry is preparing for a large volume of costly Business Interruption…
Insurer seeks declaration that COVID-19 claims for closure-related losses are not covered
4/27/20
By Barry Miller Travelers Insurance Company wants a federal court to declare it has no duty to pay business income loss to a California law firm which claims that COVID-19 closures have caused it to lose revenue. The ABA Journal reports that Travelers is seeking a declaratory judgment in the Central District of California. The…
Game, Set, Match: Wimbledon’s Decision To Purchase Pandemic Insurance Coverage Could Be A Winner
4/13/20
By: Bill Buechner Among many other more serious impacts related to the COVID-19 pandemic, many prominent sporting events have been cancelled or postponed, including the NCAA Tournament, the Masters, the Kentucky Derby and the French Open tennis tournament. Also, all American professional sports leagues (except for the NFL) have suspended their seasons indefinitely or postponed…