Policyholders, Insurers Debate Over Creation of MDL Docket for COVID-19 Insurance Lawsuits

WASHINGTON, D.C. — Several businesses have filed briefs with the Judicial Panel on Multidistrict Litigation, supporting creation of a federal MDL docket for claims relating to COVID-19 coverage disputes, while the insurers argue that consolidation would not be appropriate.

The movants argue that the issue of whether business interruption insurance policies will cover losses incurred by businesses forced to temporarily close due to governmental orders “is one of national importance and great significance to the ultimate survival of many businesses.”

“Addressing this issue in a uniform manner as opposed to potentially disparate treatment by different courts throughout the country …