Calif. Federal Judge Dismisses Outback Restaurant Owners’ COVID-19 Coverage Action

SAN FRANCISCO — A California federal judge has dismissed a COVID-19 coverage action filed against Affiliated FM Insurance Co. by the owner of more than 100 Outback Steakhouse restaurants, ruling that they did not sustain “direct physical loss of or damage to” insured property.

However, in the March 19 order, Judge Thomas S. Hixson of the U.S. District Court for the Northern District of California did not address plaintiffs’ pending claims for Communicable Disease coverage under the policy, noting AFM has admitted they remain under consideration.

Out West Restaurant Group, Inc., Cerca Trova Restaurant Group Inc., Cerca Trova Steakhouse LP., …