2nd Cir. Upholds Dismissal of N.Y. Tae-Kwon-Do’s COVID-19 Coverage Action

BUFFALO, N.Y. — The 2nd Circuit U.S. Court of Appeals has upheld dismissal of a COVID-19 coverage action filed by a Buffalo, N.Y., martial arts and fitness studio, affirming the studio did not sustain “direct physical loss or damage” as required by the policy.

On March 16, the full appellate court denied Kim-Chee LLC and Yup Chagi Inc. d/b/a Master Gorino’s Pil-Sung Tae-Kwon-Do’s petition for review of its Jan. 28 panel ruling that neither government closure orders issued in response to the pandemic nor the virus itself change or alter property for coverage purposes.

Kim-Chee LLC and Yup Chagi Inc. …