Topa Insurance Not Liable for L.A. Nightclub’s COVID-19 Losses, Judge Says

  • Order

LOS ANGELES — A California federal judge has dismissed a San Diego nightclub’s COVID-19 business interruption coverage action against Topa Insurance Co. on the basis that it failed to allege “direct physical loss of or damage” to its insured property.

On April 9, Judge Otis D. Wright II of the U.S. District Court for the Central District of California explained that Caribe Restaurant & Nightclub Inc.’s economic business impairment does not qualify as a physical loss or damage, which requires structure alteration to property.

Caribe was forced to close its San Diego restaurant and nightclub La Luz Ultaralounge when California …


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