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The Sixth Circuit twice concludes that covid shutdown does not lead to physical loss



After a district court ruled that Zurich American must go to trial over an interruption in the company due to covid closures, Zurich appealed to the Sixth Circuit Court of Appeal that Santos Italian Café LLC v Acuity Ins. Co ., No. 21-3068, ___ F.4th ____, at * 3 (6th Cir. September 22, 2021) and I re: Zurich American Insurance Company, USCA, Sixth Circuit, case: 1:20-cv-01239-DAP Doc #: 23 Filed: 30/09/21 that there must be direct physical loss of or damage to property.

The District Court granted summary judgments to plaintiffs in the insurance coverage issues asserted in their allegations of breach of contract (Count I) and declaratory judgment (Count III); the legal issue in Count I for interlocutory appeal under 28 USC § 1292 (b).

The parties agreed that Zurich raises at least one crucial legal question for appeal: if the insurance's coverage for "direct physical loss of or damage to property" applies, the plaintiffs' loss of business income due to COVID-19-related government shutdown order that stopped their dinners. The parties also agreed that a solution to this issue could significantly affect Zurich's liability and thus the outcome of the disputes below.

When the district court issued summary judgments in counts I and III, the district court held that COVID-19-related interruption in the plaintiffs' eating activities amounted to "direct physical loss of or damage to [Plaintiffs’] property" under Ohio law.

However, the Sixth Circuit, following the District Court's decision against Zurich, held that "a pandemic-triggered government order, excluding eating at a restaurant," cannot be considered "direct physical loss of or damage to" property "under Ohio law: Santo & # 39; s Italian Café LLC v. Acuity Ins. Co ., No. 21-3068, ___ F.4th ____, kl * 3 (6th Cir. September 22, 2021).

Consequently, the petition for leave to appeal is granted, the district court's decision GOES FROM the insurance coverage issue alleged in counts I and III, and the case COMES FOR additional proceedings that comply with this decision and denies the plaintiffs' motion.

stop courts – sorry for the people who lose money as a result of government actions forcing them to close their businesses and lose money.They tried to collect from their insurers and almost universally the courts have found no cover In the United States, no matter how sad their losses are, the terms of the agreement are clear and unambiguous and must be applied. Of course, plaintiffs can try to sue the state entity that closed them because it was an uncompensated infringement in violation of the Fifth Amendment to the U.S. Constitution that was applied to the states and cities by the 14th Amendment.


© 2021 – Barry Zalma

Barry Zalma, Esq., CFE, now limits his practice to working as an insurance consultant specializing in insurance coverage, insurance claims handling, bad faith insurance and insurance fraud almost as much for insurers and policyholders.

He also acts as an arbitrator or mediator for insurance-related disputes. He practiced law in California for more than 44 years as an insurance and claims management attorney and more than 54 years in the insurance industry.

He is available at http://www.zalma.com and zalma@zalma.com. Mr. Zalma is the first recipient of the first annual Claims Magazine / ACE Legend Award. For the past 53 years, Barry Zalma has devoted his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to enable insurance companies and their indemnity staff to become insurance professionals.

Go to my articles at https://zalma.substack.com, the podcast Zalma On Insurance at https://anchor.fm/barry-zalma; Follow Mr. Zalma on Twitter at https://twitter.com/bzalma ; Go to Barry Zalma videos at https://www.rumble.com/zalma; Go to Barry Zalma on YouTube- https://www.youtube.com/channel/UCysiZklEtxZsSF9DfC0Expg; Go to Insurance Claims Library-https: //zalma.com/blog/insurance-claims-library/ T the last two issues of ZIFL are available at https://zalma.com/zalmas-insurance-fraud- letter -2 / podcast now available at https://podcasts.apple.com/us/podcast/zalma-on-insurance/id1509583809?uo=4


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