Tuesday, November 9, 2021

Motion To Compel Discovery on Meaning of Virus Exclusion in Covid-19 Business Interruption Coverage Case Denied

In the case of 1800 Farrugut, Inc. v. Utica First Ins. Co., No. 2:20-cv-03449-KSM (E.D. Pa. Sept. 16, 2021 Marston, J.), the court ruled that a business owner seeking a judicial declaration that it was entitled to losses caused by the COVID-19 pandemic governmental shutdown orders could not obtain targeted discovery on the meaning of the virus exclusion in its insurance policy where the meaning of the exclusion was unambiguous and plainly barred the Plaintiff’s claims for recovery.

According to the Opinion, the Plaintiff owned a restaurant and bar which was subjected to governmental shutdown orders during the COVID pandemic. Thereafter, the business sought business interruption coverage from its carrier.

According to the Opinion, the court found that the insurance policy contained a plainly worded virus exclusion.

As noted above, during the course of this declaratory judgement action regarding coverage, the court denied the Plaintiff’s efforts to compel discovery relative to the meaning of the virus exclusion.

Anyone wishing to review a copy of this decision may click this LINK.  The Court's companion Order can be viewed HERE

Source: “Digest of Recent Opinions.” Pennsylvania Law Weekly (Oct. 8, 2021).

Source of image:  Photo by Markus Winkler on Unsplash.com.

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