5th Cir. Upholds Dismissal of Surgical Clinic’s COVID-19 Coverage Action

  • Opinion

NEW ORLEANS — The 5th Circuit U.S. Court of Appeals has upheld dismissal of a surgical clinic’s COVID-19 coverage action against Transportation Insurance Co., affirming that neither the pandemic nor related government closure orders cause “direct physical loss or damage” to property, as required by the policy.

On March 29, the appellate panel agreed with a Louisiana federal court 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.

Louisiana Bone & Joint Clinic, L.L.C. (LBJC) owns a medical and surgical clinic for pain …


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