Pa. Federal Judge Tosses Car Dealerships’ COVID-19 Coverage Action

PHILADELPHIA — A Pennsylvania federal judge has dismissed a COVID-19 coverage action filed by the owners of multiple car dealerships, ruling that government orders requiring them to suspend sales operations did not cause ““direct physical loss of or damage to property.”

In a May 26 order, Judge Joseph F. Leeson Jr. of the U.S. District Court for the Eastern District of Pennsylvania ruled that “loss of use” of the dealership’s showrooms “must be tied to a physical condition actually impacting the property.”

Star Buick GMC, Star Buick GMC Cadillac, and Star Pre-Owned of Bethlehem own several car dealerships in Pennsylvania. …