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9th U.S. Circuit Court of Appeals,
Covid Court Ops,
Insurance

Dec. 29, 2022

Circuit asks state court’s opinion on COVID business interruption coverage

As a few federal judges take a different tack from the majority on COVID-19 business interruption insurance coverage, the 9th U.S. Circuit Court of Appeals asks the California Supreme Court its opinion. The state has a lower pleading standard than federal courts, so the court’s decision could keep more such lawsuits alive.

After many insurance company victories, mostly in federal courts across the country ruling the COVID-19 virus did not cause actual physical damage to covered business premises, the 9th U.S. Circuit Court of Appeals has asked the California Supreme Court to clarify what state law is on the matter.

Covington & Burling LLP partner Rani Gupta, whose area of expertise is corporate insurance recovery, commented in a phone call Wednesday that...

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