A beer distributor whose delivery was spoiled when Walt Disney Co. refused delivery due to the suspension of the pandemic can not be compensated for the loss of business interruption during its insurance coverage, a federal district court ruled.
Walt Disney Co. Walt Disney Parks and Resorts US Inc. voluntarily closed on March 15 and subsequently refused to accept the beer from Orlando, Florida-based Harvest Moon Distributors, with which it had an agreement, according to Friday's decision by U.S. District Court of Orlando Harvest Moon Distributors Inc. v Southern-Owners Insurance Co. The beer was later destroyed, according to the decision.
Harvest Moon sued its insurance company, Lansing, Michigan-based southern owner, after it refused to pay its claim for the spoiled beer. The court granted the insurer's proposal to dismiss the case.
The court agreed with Harvest Moon that the distributor had suffered a direct physical loss of his property, the beer.
But while Harvest Moon & # 39 ;s policy covered the loss of revenue if its business was discontinued, it did not cover Disney's shutdown, the decision said.
“Specifically, there is nothing to suggest that the plaintiff could not buy beer from its suppliers, sell beer to willing buyers or supply beer to such buyers.
"There is no claim that Disney is merely the plaintiff's purchaser and therefore Disney's unwillingness or inability to purchase beer effectively terminated the entire plaintiff's business," the decision states.
"The court cannot conclude from the mere allegation that the plaintiff's product spoiled that the plaintiff's business was suspended, ”the court said in concluding that Harvest Moon failed to" claim sufficient substantive evidence to claim coverage for lost business revenue and additional costs. "Losses and pandemic incidents were not expressly excluded from the coverage, the loss" arose from Disney's act of refusing beer, not from the pandemic. COVID-1
" Disney's motivation for its decisions is irrelevant. The policy explicitly excludes such business decisions from individuals, groups or organizations from the coverage, ”it said when he granted the insurer's proposal to dismiss the case.
Southern-Owners' attorney had no comment, while Harvest Moon & # 39 ;s attorney did not respond. to a request for comment.
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