N.C. Clothing Chain Not Covered for COVID-19 Losses, Federal Magistrate Judge Says

GREENSBORO, N.C. — The owner of a southern clothing store chain is not entitled to COVID-19 business interruption coverage because the policy’s virus exclusion applies to the alleged losses, a North Carolina federal magistrate judge has concluded.

In a June 7 report and recommendation, Magistrate Judge Joe L. Webster of the U.S. District Court for the Middle District of North Carolina said the policy’s language “is not susceptible to any reasonable interpretation other than that it excludes coverage for damages caused by a virus or bacteria.”

Julie’s Inc. owns 13 clothing stores in North Carolina and South Carolina. Beginning …