Action Seeking Coverage for COVID-19 Rental-Income Losses Remanded to Calif. State Court

LOS ANGELES — A California federal judge has remanded an action in which the Geragos & Geragos Fine Arts Building LLC is seeking coverage for rental-income losses it has sustained during the COVID-19 pandemic, ruling that the insurer has not established that the amount in controversy exceeds $75,000.

In a July 20 order, Judge R. Gary Klausner of the U.S. District Court for the Central District of California deemed “too speculative” The Travelers Indemnity Company of Connecticut’s argument that the coverage would exceed $75,000 if lost-rental damages continue to accrue at a rate of $6,800 per month for the duration …