Insurer Asks Court to Toss Authority Claims In COVID-19 MDL

Society Insurance Co. has asked an Illinois federal judge to toss all claims in the COVID-19 business interruption multidistrict litigation asking for civil authority and contamination coverage for businesses’ losses stemming from the COVID-19 pandemic.

U.S. District Judge Edmond E. Chang’s previous denial of civil authority and contamination coverage in three bellwether cases should be applied to lawsuits now seeking that same coverage, as well as two suits asking solely for civil authority coverage, Society has said.

In the previous ruling, Judge Chang dismissed the policyholders’ claims under civil authority coverage, saying the shutdown orders did not prohibit them from accessing the properties. However, he allowed the restaurants, bars and theaters to proceed on business income coverage.

The policyholders are represented by Tim Burns of Burns Bowen Bair LLP, as well as attorneys from DiCello Levitt Gutzler LLC, The Lanier Law Firm PC, McGuireWoods, Clifford Law Offices, and others.

You can read the full story at Law360.