Calif. Movie Theatre Owner’s COVID-19 Coverage Action Reinstated

SAN DIEGO — A California appellate court has reinstated a movie theatre owner’s COVID-19 coverage action, ruling that it should be allowed to amend its complaint as to the policy’s crisis management and event cancellation provisions, because they do not require ““direct physical loss of or damage to property.”

In a Jan. 13 opinion, the California Court of Appeal, 4th District, found the trial court erred in ruling that amendment as to those coverage provisions would be futile.

Boffo Cinemas LLC owns five movie theaters containing on-site restaurants, cafes and bars in various California locations. Boffo sustained economic losses after …