Two state federal appeals courts in Michigan have ruled out policyholders in disputes over covid-19-related business interruptions.
Both decisions, issued Thursday, cited the Michigan Court of Appeals’ ruling in Gavrilides Management Co. LLC v. Michigan Insurance Co.
Lansing State Court of Appeal ruled against three restaurants operating in Wayne County, Michigan, confirming a lower court ruling in favor of Lansing-based properties–Owners Insurance Co., according to the decision in Three Won Three, Corp., Eight Ate, LLC and Ate Ate, LLC v. Property-Owners Insurance Co.
The ruling said that a requirement for coverage “in practice is shielded by Gavrilidesconcluded that the type of losses caused by the virus which the plaintiffs claimed ̵1; the cost of cleaning surfaces – did not constitute damage or loss under the insurance.
“In any event … the virus exclusion policy explicitly prevents coverage for damage or loss caused by the virus,” the ruling said.
The Michigan Court of Appeals in Detroit ruled against a spa and salon, Massage Bliss Inc., in Meridian Charter Township, Michigan, by upholding a lower court decision in favor of Lansing-based Farm Bureau General Insurance Co. in Michigan i Massage Bliss, Inc. v. Farm Bureau General Insurance Co. in Michigan.
The court ruled that there was no direct loss of property. “There were no allegations or indications that the plaintiff had actually been deprived or evicted from the property,” the verdict said.
The plaintiff, along with many Michigan companies, was “only restricted or restricted in these by property; there was no direct physical loss of property,” the decision said.
Lawyers in the case had no comments, did not respond to requests for comment or could not be reached.
On Friday, two Chicago state courts of law ruled in favor of a Zurich Insurance Group Ltd. unit in Covid-19-related business interruption litigation filed by restaurant and hotel chains.