A federal appeals court on Wednesday issued its third verdict this week against a policyholder in a Covid-19-related lawsuit for business interruption filed against State Farm Insurance Co. units by an eyewear retailer.
The 11th U.S. Circuit Court of Appeals in Atlanta ruled against Boca Raton, Florida-based Royal Palm Optical Inc. in Royal Palm Optical, Inc. vs. State Farm Mutual Automobile Insurance Co., State Farm Florida Insurance Co.
As before, the 11th Circuit, which upheld a decision by the U.S. District Court in Ft. Pierce, Florida, cited his earlier decision in SA Palm Beach LLC v. Some underwriters at Lloyd’s London and the decision of an Florida Court of Appeals in Commander, Inc., v. Certain Underwriters at Lloyd̵7;s London.
“Royal Palm’s arguments are precluded by the interpretation of the phrase “direct physical loss of or injury to” in these decisions, the four-page opinion said.
“As there is no coverage for the type of purely pecuniary damages claimed by Royal Palm under its invoked policy provisions, we confirm the district court’s decision.”
Lawyers in the case did not respond to a request for comment.
On Tuesday, the 11th district court ruled against restaurants in two similar trials.