Thursday, December 30, 2021

Motion To Remand Denied in COVID-19 Business Interruption Coverage Case

In the case of Greenwood Racing, Inc. v. American Guar. & Liability Ins. Co., No. 2:21-CV-01682-GJP (E.D. Pa. Oct. 20, 2021 Pappert, J.), the court denied a Motion by a Plaintiff to remand a case back to state court from federal court in a matter involving a declaratory judgment action on business interruption coverage issues related to the COVID-19 pandemic.
The entity involved is a casino and racetrack.   

According to the Opinion, the Plaintiff had initially filed the matter in a state court seeking a judicial declaration that their insurers were required to insure losses sustained by the Plaintiff as a result of the COVID-19 pandemic. The carrier removed the case to federal court and the Plaintiff moved to remand the case back.

The court noted that it was denying the motion in light of recent guidance from the Third Circuit Court of Appeals on the standard of review applicable to motions to remand as set forth in the case of DiAnoia’s Eatery, LLC v. Motorists Mut. Ins. Co., 10 F.4th 192 (3d Cir. 2021).

After reviewing the recent decision by the Third Circuit Court of Appeals, the federal trial court in this Greenwood declined to remand this declaratory judgment coverage action back to the state court where the federal court found that the case did not involve any novel issues of state law and where there was no parallel state proceeding pending. As such, the Plaintiff’s Motion to Remand was denied.

Anyone wishing to review a copy of this October 20, 2021 decision on the motion to remand may click this LINK.

And here is another LINK, this one to the same Court's November 1, 2021 dismissing the Complaint before it after finding that the allegations of the Plaintiff's Complaint primarily seeking coverage under the pollution event clause was vague and speculative.  Leave to amend was granted.  The companion Order to that decision can be viewed HERE.

Source: “Digest of Recent Opinions.” Pennsylvania Law Weekly (Nov. 18, 2021).

Source of image:  Photo by Drew Rae from

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