COVID claims continue to fail

Golden Corral Corporation and Golden Corral Franchising Systems, Inc. (“Golden Corral”) appealed the district court’s order granting Illinois Union Insurance Company’s motion for judgment in Golden Corral’s claim for insurance benefits for business losses Golden Corral Prison incurred during the covid-19 the pandemic.

IN Golden Corral Corp.; Golden Corral Franchising Systems Inc. v. Illinois Union Insurance Companyno. 21-2119, United States Court of Appeals, Fourth Circuit (August 11, 2022) the Fourth Circuit affirmed the district court’s decision that Uncork & Create LLC v. Cincinnati Ins. Co.27 F.4th 926, 933-34 (4th Cir. 2022) which held that an insurance policy’s coverage for loss of income and other expenses did not apply to the plaintiff’s claim for economic loss caused by the covid-19 pandemic in the absence of any material destruction or material damage to its covered premises and further observe that our holding is consistent with the unanimous decisions of our sister circuits, which have applied the laws of various states to similar insurance claims and insurance regulations.

The Fourth Circuit waived oral argument because the facts and legal propositions are adequately presented in the record before this court and argument would not assist the decision-making process.

It appears that plaintiffs and their attorneys refuse to read the opinions of every federal circuit and nearly every state trial and appellate court that Covid-19 does not cause direct physical damage to the insured’s property, eliminating the ability to collect for business interruption. Some creative lawyers have attempted reverse condemnation of the state for shutting down businesses as a Fifth Amendment right. One court said: “

However, the Pennsylvania Supreme Court has found that the governor’s executive order is a valid use of police power and not a taking in the exercise of eminent domain. Friends of Danny DeVito v. Wolf, 227 A.3d 872, 896 (Pa.), cert. denied, ––– US ––––, 141 S. Ct. 239, 208 L.Ed. 2d 17 (2020).” [1600 Walnut Corp. v. Cole Haan Co., 530 F.Supp.3d 555 (E.D. Pa. 2021)]

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