N.J. Federal Judge Remands Restaurant’s COVID-19 Coverage Action to State Court

TRENTON, N.J. — A New Jersey federal judge has remanded a restaurant's COVID-19 coverage action to state court, ruling that the action presents “novel issues of state law,” specifically, the impact of government stay-at-home orders on business interruption insurance.

In an Oct. 16 order, Judge Freda Wolfson of the U.S. District Court for the District of New Jersey explained that the law on insurance coverage for business interruption based upon COVID-19 closures remains unsettled and are best decided by a state court judge.

“Were this Court to step in and exercise jurisdiction over this matter, it could potentially issue a …