New Orleans Clothier Not Covered for COVID-19 Economic Losses, Judge Rules



DOCUMENTS
  • Order


NEW ORLEANS — A Louisiana federal judge has dismissed a COVID-19 coverage action filed against Twin City Fire Insurance Co. by a men’s clothing store chain, ruling that there was no “direct physical loss or damage” to property as required by the policy.

In an April 23 order, Senior Judge Ivan L.R. Lemelle of the U.S. District Court for the Eastern District of Louisiana rejected plaintiffs’ broader interpretation of “direct physical loss,” concluding that lost profits from government-mandated business closures are not covered without evidence of physical property damage.

“We decline to construe ‘direct physical loss’ broadly because the …






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