Federal Judge Dismisses San Diego Restaurant’s COVID-19 Coverage Action

SAN DIEGO — A San Diego restaurant is not entitled to COVID-19 business interruption coverage from American Fire and Casualty Co. and Ohio Security Insurance Co. because it did not sustain “direct physical loss of or damage to property,” a federal judge has ruled.

In a June 29 order, Judge Anthony J. Battaglia of the U.S. District Court for the Southern District of California rejected Park 101 LLC and Louisiana Purchase LLC d/b/a Louisiana Purchase SD’s argument that “direct physical loss of” property includes the inability to use the property.”

Louisiana Purchase SD, an eatery that specializes in …