Firm News
Wiggin and Dana Obtains Summary Judgement for Zurich American Insurance Company in COVID-19 Business Interruption Lawsuit
Partnerย Michael Menapaceย and Associatesย Catherine Baiocchiย andย Leah Manteiย recently obtained summary judgment on behalf of Zurich American Insurance Company in a COVID-19 business interruption suit brought by two hospitality companies.ย 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 andย sought coverageย under their commercial property insurance policies. Each coverage plaintiffs claimed required โdirect physical loss of or damage toโ 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 Zurichโs position and granted summary judgment in the insurerโs favor.
Theย Law360ย article, โZurich Escapes RI Hotelier’s Virus Coverage Suitโย discusses theย Rhode Island federal courtย decision.
To read the article,ย click here.
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