Hotel Conglomerate Not Covered for COVID-19 Losses, Ala. Federal Judge Rules
May 7, 2021
BIRMINGHAM, Ala. — An Alabama federal judge has dismissed a hotel and restaurant owner’s COVID-19 coverage action, ruling that it did not sustain “a direct physical loss or direct physical damage to” covered property, as required by the policy.
On May 5, Judge Gray M. Borden of the U.S. District Court for the Northern District of Alabama concluded that COVID-19 particles do not cause “tangible, concrete” harm to property as required to trigger coverage.
Ascent operates hotels and restaurants at 35 locations in Alabama, Georgia, Tennessee, Mississippi, and Indiana. The hotels include Marriott, Hampton Inn, Holiday Inn, LaQuinta Inn, …