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The hotel chain's Louisiana COVID-19 claim may continue: Judge



A state judge in Connecticut has refused to dismiss interruptions in connection with business interruptions against Zurich from a hotel chain seeking coverage for its property in Louisiana,

Shelton, Connecticut-based New Castle Hotels LLC brought an action against Zurich at the state court in Hartford in March and sought coverage for its properties in Maine, South Carolina, New York, Connecticut, Georgia and Canada as well as the New Orleans Fairfield Inn Downtown, according to court papers in New Castle Hotels LLC v. Zurich American Insurance Co .

In its judgment on Tuesday, the court dismissed disputes for everyone except the Louisiana Hotel, citing the virus' exclusion of coverage. Louisiana law does not allow exclusion, Judge Thomas Moukawsher ruled.

Zurich "claims that there is nothing" physical "about the loss or damage from the COVID-1

9 virus," the ruling said. "But can this only be said to be true?"

The Connecticut Act "only requires a party to invoke" a simple and concise statement of the substantive factors invoked by the speaker. "New Castle has done this," the verdict states.

It claims that the virus "is a cause of actual physical loss or damage to property" and "continues to cite authorities and private sources to claim that the virus is extremely harmful to humans" and may linger on surfaces for up to three days.

"It is further claimed that the physical dimensions of affected physical property can be microscopically damaged and altered by the virus," the government said.

Zurich has asked the court to take legal notice that the virus does not physically change objections, the ruling said. However, it states, "The Court simply cannot notice at this stage that the virus does not degrade physical objects on at least a microscopic level.

" That question may have to wait another day – on summary assessment perhaps or after trial. What is important for now is that physical harm is specifically alleged here, "the verdict said.

In a pointed remonstrance to courts that have decided otherwise, Judge Moukawsher says, reasoning and without evidence-has been misguided.

"For the time being, in this court and for this policy, it would be wrong to hurry," the verdict said, allowing the disputes over New Castle & # 39 ;s Louisiana property to continue.

A New Castle lawyer had no comment. , while Zurich did not respond to a request for comment.

In August, Judge Moukawsher ruled that an Indian tribe in Connecticut could recover up to $ 2 million in business interruptions and reorganization costs under $ 1.6 billion in coverage, a state court has ruled.

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