The Second U.S. Court of Appeals in New York on Thursday ruled against an Italian restaurant in a case of covid-19 business interruption.
“We conclude that the clear text” of the policy provisions “clarifies that either direct physical loss or property damage is a necessary precedent for coverage,” the Court of Appeal said in its judgment in BR Restaurant Corp., DBA Bruno’s Restaurante Italiano v. Nationwide Mutual Insurance Co., submitted by a restaurant in Howard Beach, New York. The verdict upheld a decision by the U.S. District Court in Central Islip, New York.
The decision of the Court’s panel of three judges referred to the Court̵7;s judgment in December of 10012 Holdings Inc. DBA Guy Hepner v. Sentinel Insurance Co.., which also held in favor of the insurer. That lawsuit was filed by an art gallery in New York against a unit of the Hartford Financial Services Group Inc.
Thursday’s ruling said “no subsequent developments in New York courts have challenged that decision. We are therefore bound by our previous decision in 10012 Holdings.”
The plaintiff’s attorney, Michael S. Cole, of Cole Chester LLP in New York, said in a statement, “New York law gives weight to increased coverage, does not comply with the federal case law rule that applies to everyone. law is consistent – this is done without looking very closely – just state it as given. “
Nationwide attorneys did not respond to a request for comment.