Memphis Restaurant Owner Says COVID-19 Shutdown Orders Caused Physical Loss

BIRMINGHAM, Ala. — The owner of a Memphis, Tenn., restaurant has filed a proposed class action against its insurers in federal court, contending that civil authority shutdown orders issued in response to the COVID-19 pandemic caused the eatery to sustain “direct physical loss” that is insured under its policy.

In a June 25 complaint filed in the U.S. District Court for the Western District of Tennessee, Creative Restaurants, Inc. d/b/a Blues Hall Dining Room d/b/a Rum Boogie Café assert that coverage is available under the policy’s provisions for business income, extra expense and civil authority.

Defendants are Covington Specialty Insurance …