Upscale Restaurant Owner Loses Bid for COVID-19 Coverage in Ariz. Federal Court

  • Order

PHOENIX — An Arizona federal judge has dismissed a COVID-19 coverage action filed against two insurers by a restaurant corporation, ruling that “loss of use” of property does not constitute “direct physical loss of or damage,” as required by the policies.

In an Oct. 13 order, Judge Diane Humetewa of the U.S. District Court for the District of Arizona ruled that plaintiff Team 44 Restaurants LLC did not sustain “actual, tangible damage” when it was forced to cease in-person dining operations in compliance with government orders issued in response to the pandemic.

Team 44 operates upscale steak and seafood restaurants …


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