In-N-Out COVID-19 Coverage Action Dismissed with Leave to Amend
July 14, 2021
LOS ANGELES — A California federal judge has granted Zurich American Insurance Co.’s motion for judgment on the pleadings in a COVID-19 business interruption coverage action filed by the In-N-Out burger chain, ruling that it failed to allege “direct physical loss or damage to” covered property.
However, in the July 7 order, Judge Josephine Staton of the U.S. District Court for the Central District of California allowed In-N-Out to amend its complaint a second time to cure the deficiencies.
In-N-Out contends it was forced to close dining rooms in its 350 restaurants due to the COVID-19 pandemic and related stay-at-home …