قالب وردپرس درنا توس
Home / Insurance / California Court of Appeals Reinstates Covid Interruption Case

California Court of Appeals Reinstates Covid Interruption Case



In a rare victory for the policyholder, a California appellate court on Wednesday changed a lower court and reintroduced a lawsuit for covid19-related business interruptions filed by a hotel and restaurant against an Allianz SE unit.

A panel of three judges at the California Court of Appeal in Los Angeles ruled in Marina Pacific Hotel and Suites LLC et al. v. Fireman’s Fund Insurance Co. that it was too early to write off the trial in “this incipient phase of the case.”

The plaintiff in the case, who owns Hotel Erwin and Larry’s, an adjacent restaurant, in the Los Angeles neighborhood of Venice, sued the Allianz unit Fireman’s Fund in July 2020 under their insurance for commercial real estate, which provided $ 22 million in business break protection. The district court announced its final decision and dismissed the case in October.

“Today we think we know how (COVID-1

9) spreads, how to protect yourself against it and how to best treat those who have it. Maybe we do,” the appeal said.

“But despite this, when a plea alleges facts sufficient to constitute a cause of action, what we believe we know – beliefs that are not yet subject to legal knowledge – has never been a correct basis for, by law, ending the alleged factors may not be true.… Yet that is exactly what happened here. ”

The verdict said that policyholders claim that the virus “not only lives on surfaces but also binds to surfaces … that change the physical condition of the property.”

“Assuming, as we must, the truth of these allegations, even if they are improbable, absent legally recognized facts that unequivocally contradict them, the insured have undoubtedly invoked direct physical loss or damage to covered property,” the judgment said.

Noting federal appellate courts that have dismissed similar cases, the ruling said the federal courts’ rules of appeal “differ significantly” from those applicable to a state court of law.

It was also stated that another appeal decision in California that went against the policyholders, The Inns by the Sea v. California Mutual Insurance Co.., was based on allegations of loss of use of the insured property due to government-ordered closures.

Lawyers in the case did not respond to a request for comment.


Source link