Morton’s Steakhouse Owners Not Covered for COVID-19 Losses, Texas Federal Judge Rules

HOUSTON — A Texas federal judge has ruled that the owners of several international restaurants, including steakhouse chain Morton’s of Chicago, cannot recover COVID-19-related economic losses from Zurich American Insurance Co. because there was no physical loss or physical damage to property.

In a Sept. 28 order, Judge Charles Eskridge of the U.S. District Court for the Southern District of Texas explained that the phrase requires tangible alteration or deprivation of property, and neither government orders issued in response to the pandemic nor the virus itself trigger coverage.

Fertitta Entertainment Inc and Fertitta Hospitality LLC own 17 restaurants, including …