New Orleans Restaurant Owner Not Covered for COVID-19 Losses, 5th Cir. Affirms



DOCUMENTS
  • Order


NEW ORLEANS — The 5th Circuit U.S. Court of Appeals has upheld dismissal of a restaurant owner’s COVID-19 coverage action against American Guarantee Liability Insurance Co., ruling the policyholder failed to plead “direct physical loss or damage.”

On Aug. 1, the appellate panel explained that business closures and suspensions related to the pandemic did not trigger coverage under this policy language because COVID-19 did not cause a tangible alteration or deprivation of the property.

Dickie Brennan owns and operates several full- service, dine-in restaurants in New Orleans. Beginning in March 2020, it experienced financial losses after local and state …






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