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COVID-19 business interruption to the Starr device may continue



A state court in Nevada has refused to dismiss COVID-19 business interruption litigation filed by a commercial real estate operator and owner in Las Vegas against a Starr Insurance Cos. Unit.

JGB Vegas Retail Lessee LLC, which owns Grand Bazaar Stores – a large mall with more than 35 restaurants and shops on the Las Vegas Strip – brought an action against Starr Surplus Lines Insurance Co. on charges including breach of contract and breach of good faith and fair trade for his refusal to pay for loss of business interruption in connection with the state-ordered closure of his business, according to legal documents in JGB Vegas Retail Lessee, LLC v Starr Surplus Lines Insurance Co.

JGB claims that it was "very likely that the new coronavirus causing COVID-1

9 was present at the Grand Bazaar Shops and thus damaged the property that JGB had rented out to its tenants", says Monday's judgment.

"The Court finds that the JGB's complaints sufficiently relate to losses arising from direct physical loss and / or damage to property from COVID-19 to trigger Starr's obligations under the property and TIME ELEMENT coverage provisions in the policy, including coverage for general business interruption and interruption by civil or military authority, "the decision states.

The Court also refused to dismiss the JGB's claims for breach of contract and related claims on the grounds that any losses or damages incurred were not covered by the exclusion of pollution and pollution

"Starr has not shown that it is unreasonable to interpret the exclusion of pollutants and pollutants so that it only applies to cases of traditional environmental and industrial pollution and contamination that are not in question here, where JGB's losses are alleged to be the result of a naturally occurring, contagious disease.This is the case, even if the exclusion contains the word “vir us, ”the verdict said.

The court also did not dismiss JBS's allegation that Starr had violated Nevada law and its breach of the implied agreement. of good faith.

JBS's lawyers had no comment while Starr did not respond to a request for comment.

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