An appeals court in the state of Florida ruled on Wednesday in favor of Lloyd’s of London in a lawsuit over covid-19 business interruptions brought by a restaurant and bar.
Commodore Inc., which operates as GreenStreet Café Inc., a restaurant and bar in Coconut Grove, Florida, has filed a lawsuit against Lloyd’s in the state court for corporate loss of income it suffered when it ceased operations during the covid-19 pandemic, according to the ruling of Florida 3rd District Court of Appeal and University Park i Commodore, Inc. d / b / a GreenStreet Café, Inc. v. Some underwriters at Lloyd’s London, etc., et al.
The trial court dismissed the case and was upheld by the appellate court in what is clearly the decision of the first appellate court in Florida State in the matter.
The all-risk commercial property policy issued by Lloyd̵7;s to GreenStreet directly covers physical loss or damage, the ruling said. “In accordance with the case law of this Court and the clear language of the policy, loss of intended use does not merely constitute” direct physical loss. “
“Instead,” direct physical loss of or damage to property “requires actual, significant changes to the insured property for coverage to be triggered under the insurance, the three-judge panel said in a ruling.
“GreenStreet’s allegation of financial loss as a result of the Miami-Dade and Miami-Dade closure decisions does not meet this requirement,” it said.
A footnote to the ruling says: “By our decision we do not mean to say that virus particles could never result in a significant change in the property, just that this is not the case here.”
Lawyers in the case did not respond to a request for comment.
Last week, the 11th U.S. Circuit Court of Appeals in Atlanta upheld the dismissal of four separate Florida COVID-19 related cases of business interruptions filed by three restaurants and a furniture chain against several insurance companies, including Lloyd’s, in a joint statement.