Fla. Federal Judge Dismisses Restaurants’ COVID-19 Business Interruption Coverage Actions
January 6, 2021
TAMPA, Fla. — A Florida federal judge has granted Scottsdale Insurance Co.’s motion to dismiss two restaurant owners’ COVID-19 business interruption coverage actions, ruling that they failed to adequately allege direct physical loss to insured property or surrounding properties.
In a Jan. 4 order, Judge William F. Jung of the U.S. District Court for the Middle District of Florida held that the government closure orders issued in response to the COVID-19 pandemic did not cause “actual” loss representing “the diminution of value of something,” as required by state law.
Plaintiffs Counter Culture Hospitality LLC and Edison Kennedy LLC own the …
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