Movie Theatre Giant Cinemark Loses Battle for COVID-19 Coverage

SHERMAN, Texas — A Texas federal judge has dismissed Cinemark Holdings Inc.’s COVID-19 coverage action against Factory Mutual Insurance Co., ruling there was no “physical loss or damage” to the movie theatre giant’s properties, as required by the policies.

In a March 21 order, Judge Amos L. Mazzant of the U.S. District Court for the Eastern District of Texas noted that in the context of COVID-19 coverage, the 5th Circuit U.S. Court of Appeals has held that “physical loss” requires a “tangible alteration or deprivation of property” (Terry Black’s Barbecue LLC v. State Auto Mutual Ins. Co.).

“Simply put, the …