San Diego Motel Loses COVID-19 Coverage Action at Appellate Level

SAN DIEGO – A California appellate court has upheld dismissal of a San Diego hotel’s COVID-19 coverage action, ruling that its alleged damages were not caused by virus-infected droplets on the surfaces of its property, but rather by cancellations during the pandemic.

In a Feb. 24 published opinion, the California Court of Appeals, 4th District, explained that the Best Rest Motel Inc. failed to present evidence creating a triable issue that the hotel "could have otherwise been operating" but for the presence of COVID-19 on the premises.

Best Rest sued Sequoia Insurance Co. after the insurer denied its claim for …