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The Court dismisses the COVID-19 action against the Berkshire unit



A federal district court in Boston agreed to dismiss a COVID-19 business interruption case filed by a real estate company against a Berkshire Hathaway Inc. entity, stating that it joins other courts that have also agreed to dismiss similar ones. " outlier "cases

SAS International Ltd., which operates a real estate business in Fall River, Massachusetts, brought an action against Berkshire Hathaway Group Inc.'s unit Star Star Indemnity Co. after refusing to reimburse SAS for COVID-19-related business interruptions. , according to the ruling of the Federal District Court on 19 February in SAS International Ltd. against General Star Indemnity Co.

"This dispute addresses the meaning of the phrase" direct physical loss of or damage to "property, which encompasses the scope of the policy," the decision said.

"Taken together, these terms require a certain lasting impact on the integrity of the property in question. In other words, the phrase" direct physical loss of or damage "does not include transient phenomena but lasting effect, much less real or imagined reputation," it said.

"In addition, the phrase" direct physical loss "is read" in the context of the policy underlines the lack of coverage for losses due to a virus. "

The policy excludes decontamination for the presence of bacteria, according to the judgment." A construction of the policy which covers losses related to COVID-1

9 but still excludes losses arising from substances of a similar nature – eg biological microscopic parts – is unreasonable.In the long run, the absence of an explicit (virus) exclusion does not work to create coverage for pandemic-related losses , "Referring to a case from 2003.

The judgment concludes that" many cases have sought to extend the terms of insurance to their limits in the wake of the extensive losses caused by COVID-19 …. In fact, courts have also uniformly refused to pursue cases in outlier that have allowed complaints containing similar allegations to survive dismissal.The court will follow up here .

Lawyers in the case did not respond to a request for comment.

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