The 10th U.S. Circuit Court of Appeals in Denver on Tuesday joined five other federal appellate courts and found that there is no coverage for covid-19-related business interruptions.
Denver-based appellate court ruled against Oklahoma City-based Goodwill Industries. in Central Oklahoma Inc. in a lawsuit it filed against Tokyo Marine Holdings Inc. Philadelphia Indemnity Insurance Co. seeking coverage of business interruptions after ceasing operations in March 2020 following an executive order issued by the Governor of Oklahoma, in accordance with the decision of ] Goodwill Industries of Central Oklahoma Inc v. Philadelphia Indemnity Insurance Co.
Goodwill's policy stated that it would pay for the closure of the business caused by direct physical loss or damage, and included a virus exclusion, according to the appellate court's decision.
The district court granted Philadelphia's motion to write off the case on the grounds that "a direct physical loss unequivocally requires the presentation of substantial damage", which Goodwill had failed to state, and during the exclusion of the policy virus.
In upholding the lower court's decision, a unanimous three-judge panel of the Court of Appeal said: "The corporate income allocation unequivocally covered all losses arising from physical alteration or tangible possession of property. None occurred here. decisions of all other districts and the vast majority of district courts to address this issue, "said the verdict, which also considered the virus exclusion to be valid and enforceable.
Actors in the case did not respond to requests for comment.
The ruling confirms similar rulings issued by the 6th U.S. Circuit Court of Appeals in Cincinnati, the 7th Circuit in Chicago, the 8th Circuit in St. Louis, the 9th in San Francisco and the 11th in Atlanta.