Calif. Healthcare Giant Loses Bid for COVID-19 Coverage in 9th Cir.

SAN FRANCISCO — A federal appellate panel has upheld dismissal of a California health care company’s COVID-19 coverage action against American Guarantee and Liability Insurance Co., explaining that all the alleged losses fall under the policies’ exclusions for contamination and government orders.

On July 28, the 9th Circuit U.S. Court of Appeals panel also found the lower court properly dismissed a claim for negligent misrepresentation against a Texas-based AGLIC employee for lack of personal jurisdiction.

Palomar Health operates Palomar Medical Center in Escondido, Calif., Pomerado Hospital in Poway, Calif., and several other healthcare facilities.

In March 2020, California state and …