5th Cir. Upholds Dismissal of Men’s Clothing Store’s COVID-19 Coverage Action



DOCUMENTS
  • Opinion


NEW ORLEANS — A federal appellate panel has upheld dismissal of a men’s clothing store chain’s COVID-19 coverage action filed against Twin City Fire Insurance Co., affirming that government-mandated closure orders do not cause “direct physical loss or damage” to property as required by the policy.

On March 22, the 5th Circuit U.S. Court of Appeals agreed with a Louisiana federal judge that “direct physical loss” does not encompass loss of business income where there is no tangible loss of property or alteration, injury, or deprivation of property.

The action was filed by Q Clothier New Orleans, LLC, Q Shirtmakers …






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