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5th Circuit rules again for insurers in COVID BI cases



The 5th U.S. Circuit Court of Appeals in New Orleans on Thursday handed down its second judgment this week in favor of an insurer in a case of covid-19 business interruption, and ruled in favor of a CNA Financial Corp. unit in litigation filed by a Texas tea and spice business. McKinney, Texas, store had failed to allege that it suffered direct physical loss of property from its covid-related closure, according to the judgment in Aggie Investments, LLC v. Continental Casualty Co.

The decision confirms an April 2021 decision of the U.S. District Court of Sherman, Texas.

The decision of the Court of Appeal referred to its earlier decision in the case Terry Black & # 39 ;s Barbecue . "As in that case, Aggie Investments has not claimed a covered loss because they are only complaining about loss of revenue due to reduced capacity in their stores," the ruling said.

"During the entire pandemic, Aggie Investments also had ownership, access to and ability to use all of its property," it said.

"Because Aggie Investments only claims that civil authorities' orders limited its capacity in store without any significant change in its property, its losses do not qualify for coverage" according to the provision, the panel of the Court of Appeal said, when confirming the lower court's decision.

Lawyers in the case did not respond to requests for comment.

The 5th Circuit became the eighth federal appellate court to rule on policyholders on the Covid-1

9 interruption with its [19459] 004] Terry Black's Barbecue dom.


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