Louisiana appeals court dishes up win for restaurant in COVID business-interruption case


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(Worthy News) – A Louisiana appeals court found that an all-risk property policy covered business-income interruption losses caused by COVID-19 shutdown orders and other operational restrictions.

In a 3-2 split Wednesday, Louisiana’s Fourth Circuit Court of Appeal reversed a bench verdict for Certain Underwriters at Lloyd’s, London in an action for declaratory relief filed by the operators of New Orleans’ 500-seat Oceana Grill. It’s the first appellate win for an insured business according to a database at University of Pennsylvania Carey Law School.

Oceana’s lead lawyer, John Houghtaling of Gauthier, Murphy & Houghtaling, said in an interview Thursday that the decision will “dramatically change the way federal courts have treated these cases.” In particular, judges should stop barring evidence about the industry’s development and widespread use of a standard virus exclusion, which he said proves that insurers consider contamination to be “physical loss or damage.” [ Source: Reuters (Read More…) ]

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