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Wendy & # 39; s other franchisees drop COVID-19 BI suit



On Wednesday, a federal district court without oral argument dismissed a COVID-19 business interruption lawsuit brought by franchisees of companies including Wendy & # 39 ;s, TGI Friday & # 39 ;s, Marriott and Hilton against a Zurich Insurance Group Ltd. unit.

The Livingston, New Jersey-based Briad Group, which has more than 120 franchise locations in the United States, filed a lawsuit against the Zurich unit American Guaranty and Liability Insurance Co. in October and sought $ 40.8 million in losses due to the pandemic, according to legal documents in Manhattan Partners LLC et al. v. American Guarantee & Liability Insurance Co.

The franchisee's policy directly covered physical loss or damage and excludes losses due to pollution.

The letter from the U.S. District Court in Newark stated, "The plaintiff has failed to cover his burden" to show that their claim falls within the basic terms of the policy. "The policy unequivocally limits its coverage to physical loss of damage to plaintiff's commercial property. said it. "It says so.

"Here, the plaintiffs have not asserted any facts that support an indication that their properties were physically damaged. The plaintiff's general statements that the COVID-1

9 virus was present on surfaces and in the air at their properties are insufficient to show property loss or damage.

Briad Group lawyer Phillip Rosenbach of the Berman Rosenbach PC in Morristown, New Jersey, said in a statement: "My clients are analyzing the court's decision and considering their options." Zurich's lawyer did not respond to a statement. request for comment.

More insurance and risk management news about the coronavirus crisis here .

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