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California is appealing the court's rules against motel BI coverage for motels



In what is believed to be the first state appeals decision in the matter, an intermediate California appellate court has ruled that there is no coverage of covid-19 business interruptions in litigation filed by a group of motels.

The California Court of Appeals of San Diego in its judgment of November 15 in The Inns by the Sea v. California Mutual Insurance Co. there was no physical loss or damage caused by the virus. The policy did not include a virus exclusion.

Inns, which operates four lodging facilities in Carmel-by-the-Sea, California, and one in Half Moon Bay, California, filed its lawsuit in April 2020, according to the ruling.

"Also "If no appeals court in California has raised the issue, many federal courts and courts in other states have done so," the ruling said.

"The vast majority of federal district court cases find no way to cover under commercial real estate insurance for a company's pandemic ̵

1; related loss of income," it said.

A panel of three judges agreed with the other decisions. "In conclusion, we conclude that the Inns have not alleged" direct physical loss of "property, based on the fact that they lost the ability to use their physical premises to generate income," it said. "

" The Lack of a Virus Exclusion in the policy does not affect the meaning of "direct physical loss of or damage to" property ", it stated.

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


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