S.C. Restaurant Not Covered for COVID-19 Losses, Pa. Federal Judge Rules
February 10, 2021
HARRISBURG, Pa. — A Pennsylvania federal judge has dismissed a COVID-19 business interruption coverage action filed by the owners of a South Carolina restaurant, finding they failed to plead any “direct physical loss of or damage to property,” as required by the policy.
On Feb. 8, Judge John E. Jones III of the U.S. District Court for the Middle District of Pennsylvania explained that “physical loss” requires tangible alteration of a structure, rather than mere economic loss.
In a May 12 complaint, Richard Kahn and AARK Enterprise LLC d/b/a Mauldin’s contended that in March it was forced to close …