A court in Illinois on Thursday refused to dismiss a lawsuit against covid-19 filed by a building development and management company against a CNA Financial Corp. entity, stating that the plaintiffs had alleged evidence of physical loss or damage, which is covered. of their policy.
New York-based construction management company JDS Construction Group LLC and Nyack, New York-based 9 Dekalb Fee Owner LLC, a construction developer developing an 80-story residential tower in Brooklyn, filed a lawsuit against CNA unit Continental Casualty Co. in the State of Chicago, according to the judgment of JDS Construction Group, LLC and 9 Dekalb Fee Owner LLC v. Continental Casualty Co.
Both JDS and 9 DeKalb are insured under a builder risk policy that covers the period March 201
By refusing to dismiss the case, the court said that the plaintiffs claim that the virus has caused d direct physical loss or damage required for coverage under the insurance.
For example, according to the judgment, the complaint claims “that the COVID-19 droplets or cores were present on solid surfaces and in the air at the insured property and that the virus, a physical substance, has attached and stuck to the plaintiff's properties. "
" In addition, the plaintiffs made detailed allegations about how the virus droplets are transported from infected people to solid surfaces in the property, to the air and (heating, ventilation and air conditioning), causing damage and changes to the property and the air from safe and breathable to unsafe and dangerous, which can survive on the surfaces for a longer, significant period of time ", says the verdict.  The court also agreed with the plaintiffs that they sufficiently claimed that the direct physical loss triggered the insurance's civil law coverage.
Cohen Z iffer Frenchman & McKenna in New York, said the verdict "will have an impact in Illinois, and it may cause some analysis in New York because the judge found in both Illinois and New York law that the virus, which is alleged to cause loss or damage. She added that these allegations are "based on science."
The CNA did not respond to a request for comment.