Firm News
Wiggin and Dana Obtains Summary Judgement for Zurich American Insurance Company in COVID-19 Business Interruption Lawsuit
Partner Michael Menapace and Associates Catherine Baiocchi and Leah Mantei recently obtained summary judgment on behalf of Zurich American Insurance Company in a COVID-19 business interruption suit brought by two hospitality companies. The Rhode Island federal court found the plaintiffs did not show the virus physically altered their properties.
Procaccianti Cos. and subsidiary TPG Hotels & Resorts, a real estate investment company that owns and operates hotels, claimed $100 million in losses from the virus and sought coverage under their commercial property insurance policies. Each coverage plaintiffs claimed required “direct physical loss of or damage to” property in some way. Zurich moved for summary judgment, arguing that neither the government COVID-19 orders nor the presence of the virus met the policy requirement of direct physical loss of or damage to property and, even if coverage was triggered, that an exclusion for virus precluded coverage. The court agreed with Zurich’s position and granted summary judgment in the insurer’s favor.
The Law360 article, “Zurich Escapes RI Hotelier’s Virus Coverage Suit” discusses the Rhode Island federal court decision.
To read the article, click here.
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