Ky. Governor Improperly Joined as Defendant to COVID-19 Coverage Action, Judge Rules

LEXINGTON, Ky. — A Kentucky federal judge has refused to remand a sportswear company’s COVID-19 business interruption coverage action against Twin City Fire Insurance Co., ruling that complete diversity exists because the joinder of the state governor as a defendant was improper.

In a Sept. 16 order, Chief Judge Danny C. Reeves of the U.S. District Court for the Eastern District of Kentucky held that it “strains credulity” to argue that Governor Andy Beshear has an interest in an action that expressly does not challenge the validity of his actions or allege that he caused any harm.”

The action …