9th Cir. Upholds Dismissal of Outback Restaurant Owners’ COVID-19 Coverage Action

  • Opinion

SAN FRANCISCO — A 9th Circuit U.S. Court of Appeals panel has upheld dismissal of COVID-19 coverage action filed against Affiliated FM Insurance Co. by the owner of more than 100 Outback Steakhouse restaurants, affirming that they did not sustain “direct physical loss of or damage to” insured property.

On Sept. 2, the panel explained that neither the presence of the virus in restaurants nor government orders restricting dine-in operations trigger coverage because the insured properties were not physically altered.

Out West Restaurant Group, Inc., Cerca Trova Restaurant Group Inc., Cerca Trova Steakhouse LP., and Cerca Trova Southwest Restaurant Group …


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