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Insurance,
California Supreme Court

Aug. 9, 2024

State high court rules against COVID-19 related business interruption claim

The decision turned aside claims under the illusory coverage doctrine, and follows the nationwide trend of rejecting business interruption insurance claims based on closures during the COVID-19 pandemic.

In another win for insurance companies, the state Supreme Court ruled Thursday against a policyholder seeking business interruption insurance in a decision that appears to doom efforts by California policyholders to recover damages because they were forced to close at the outset of the COVID-19 pandemic.

The justices reversed a 1st District Court of Appeal decision in favor of John's Grill restaurant in San Francisco, rejecting arguments by the plaintiff's attorneys that ...

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