In a series of rulings issued Wednesday, the 6th U.S. Circuit Court of Appeals in Cincinnati ruled that various Ohio businesses were not required to cover lost revenue during the Covid-19 lockdowns.
The appeals court said it had withheld ruling on the case pending the Ohio Supreme Court ruling on a similar case. That state Supreme Court decision – Neuro-Communication Services Inc. v. Cincinnati Insurance Co. et al — came earlier this month amid the court’s ruling that business interruption coverage was not triggered because the company had suffered no physical loss.
IN Brunswick Panini’s LLC v. Zurich American Insurance Co.the 6th Circuit held that, under the Supreme Court̵7;s analysis, the plaintiff restaurants “have not adequately alleged the requisite “direct physical loss of or damage to” their restaurants or to neighboring properties simply because of their loss of use .”
The Court of Appeal issued similar judgments in Equity Planning Corp. v. Westfield Insurance Co .; Ceres Enterprises LLC v. Travelers Indemnity Co. of America; Family Tacos LLC v. Auto-Owners Insurance Co.; and Mikmar Inc. v. Westfield Insurance Co.
Thousands of businesses sued their insurers to seek business interruption coverage after they were forced to close or curtail operations during the 2020 Covid-19 lockdowns. Most of the rulings so far have been in favor of the insurers.