In yet another Court of Appeal decision in favor of an insurer in a covid-19 case, the 6th U.S. Circuit Court of Appeals ruled on Friday that a group of private preschools is not eligible to cover business interruptions.
The Cincinnati – based appellate court against Grove City, Ohio-based Dakota Girls LLC and 16 appellants in their judgment in favor of a Tokyo Marine Holdings Inc. unit in Dakota Girls, LLC et. al. v. Philadelphia Indemnity Insurance Co . It was the latest in several Court of Appeal rulings against policyholders in cases of covid-19 business interruptions.
In its original complaint, the Dakota Girls argued that they were entitled to coverage based on four policy provisions: commercial and personal property; business income; civilian government orders; and infectious diseases and waterborne pathogens, according to the ruling.
In March, the US District Court in Columbus, Ohio, granted the Tokyo Marine Unit Philadelphia Indemnity's motion to dismiss the case.
Based on 6th Circuits' previous ruling in favor of the insurer in Santo & Italian Café LLC v. Acuity Insurance Co., the preschool focused its appeal solely on the claim of infectious diseases and waterborne pathogens.
This claim was rejected by a unanimous appellate court with three judges panel.
The Dakota Girls never claimed "that someone in the schools actually had covid-1
“As we have just shown, the policy has a definite legal meaning – that the coverage is only triggered by a suspension order that resulted from an actual illness caused by a contagious disease m in preschools . "
" That Meaning Excludes Dakota Girls & # 39; offer of cover under the provision on communicable diseases, "said the panel to confirm the lower court's decision rejecting the case.
Actors in the case did not respond to requests for comment.