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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Two petitions by groups of policyholders to centralize the disputes of business interruption insurance class actions relating to COVID-19 business losses were filed in the Judicial Panel on Multidistrict Litigation. One petition seeks to have the cases centralized in Illinois while the second petition is asking for centralization in Pennsylvania. Insurance and policyholders have filed 63 responses to the petitions. For those supporting such consolidation, mostly policyholders, argue efficiency. Those opposing such consolidation, mostly insurers, policyholders and advocates for both, argue specific policies and claims pertain to jurisdictions in different ways making consolidation ineffective.

The JPML meets in July and will issue a decision.

Currently, Stoll Berne has two similar business interruption insurance class actions. To read about one such case regarding Portland’s own James Beard award-winning chef Naomi Pomeroy and the celebrated restaurant Beast, click here.


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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