Calif. Federal Judge Dismisses Barbershops’ COVID-19 Coverage Action

SAN DIEGO — A California federal judge has dismissed a lawsuit filed by two San Diego barbershops seeking coverage for COVID-19-related business interruption losses, ruling that they failed to allege any “direct physical loss of or damage to property” as required by the policy’s business income, civil authority, and extra expense coverage provisions.

In the Sept. 11 order, Judge Cathy Ann Bencivengo the U.S. District Court for the Southern District of California allowed Pappy’s Barber Shops Inc. and Pappy’s Barber Shop Poway Inc. to move for leave to amend their complaint, adding, however, that “any amendment is likely to …