California Appellate Court Allows COVID-19 Business Interruption Insurance Case to Proceed

A California Second Appellate District panel recently gave the opinion that California state courts, as opposed to US district courts, do not grant judges the authority to dismiss cases based on their views on the likelihood of a case to prevail prior to hearing evidence. This ruling came out due to hotel owners/insurance policyholders seeking insurance coverage claims due to the COVID-19 shutdown and not being allowed to provide evidence at this point.

The question at issue is if specific business interruption policies include communicable diseases, if COVID-19 is considered that, and what, if any, loss a company suffers due to it. A company must show a physical loss. Policyholders state they have suffered loss while insurance carriers state there are communicable disease carveouts.

This blog is intended to provide information to the general public and to practitioners about developments that may impact Oregon class actions.

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Steve Larson

An experienced trial lawyer who handles both hourly and contingent fee cases, Steve has expertise in class actions, environmental clean-up litigation, antitrust litigation, securities litigation, corporate disputes, intellectual property disputes, unfair competition claims, and disputes involving family wealth. Steve regularly represents individuals and businesses in federal and state court and has obtained class-wide recovery in multiple class actions. A veteran practitioner, Steve’s clients value his creative approach to resolving complex litigation matters.


Legal Disclaimer

The information contained in this blog does not constitute legal advice, and does not create an attorney-client relationship. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this blog.