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Insurance,
Civil Litigation,
9th U.S. Circuit Court of Appeals

Oct. 4, 2021

Ruling for insurers, 9th Circuit says cause of closures ‘not debatable’

“There are now seven federal court of appeals decisions on COVID-19 business interruption claims, and every one rejects policyholders’ efforts to convert claims for purely economic losses into claims for physical loss or physical damage to covered property insured by a property insurance policy,” wrote Laura A. Foggan, a partner with Crowell & Moring LLP.

San Francisco retailer Mudpie Inc. is not entitled to any damages for business interruption from an insurance company over government-ordered closures due to the COVID-19 pandemic, a 9th U.S. Circuit Court of Appeals panel ruled Friday.

The same panel also rejected appeals by a dental appliance manufacturer, Selane Products Inc., and a group of minor league baseball teams against their insurance companies in unpublished decisions.

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