Texas Judge Recommends Dismissal of ‘Escape Room’ Co.’s COVID-19 Coverage Action

HOUSTON — A Texas federal magistrate judge has recommended dismissal of an “escape room” company’s COVID-19 coverage action against Houston Casualty Co., finding it failed to plead “direct physical loss of or damage to” covered property, as required by the policy.

In a Nov. 10 report and recommendation, Judge Andrew M. Edison explained that Texas courts have interpreted the phrase as requiring that covered property be physically lost or damaged before coverage can exist, and plaintiff’s allegations fail to meet that standard.

R&J Entertainment LLC d/b/a Trapped Escape Room and TRAPPED! LLC operate escape room businesses in California and Nevada. …