Fla. Federal Judge Dismisses Restaurants’ COVID-19 Business Interruption Coverage Actions

TAMPA, Fla. — A Florida federal judge has granted Scottsdale Insurance Co.’s motion to dismiss two restaurant owners’ COVID-19 business interruption coverage actions, ruling that they failed to adequately allege direct physical loss to insured property or surrounding properties.

In a Jan. 4 order, Judge William F. Jung of the U.S. District Court for the Middle District of Florida held that the government closure orders issued in response to the COVID-19 pandemic did not cause “actual” loss representing “the diminution of value of something,” as required by state law.

Plaintiffs Counter Culture Hospitality LLC and Edison Kennedy LLC own the …