Facts

Plaintiffs FlorExpo LLC and its subsidiary, Kendal Floral Supply LLC., import and distribute fresh-cut flowers from South America. FlorExpo purchased commercial property insurance from defendant Traveler's Property Casualty Company of America. This insurance policy included "the Deluxe Property coverage" for both plaintiffs for the 2020 to 2021 year. The policy covered loss or damages to "stock" which included the cut flowers that FlorExpo and Kendal kept at different storage locations. Between March 16 and March 22, 2020, government authorities prevented FlorExpo and Kendal from entering two of their warehouses containing their flower stock and the inability to access the warehouses led to a total loss of their stock at these locations. Around April 21, 2020, FlorExpo and Kendal tendered the loss and damage claim to Traveler's for loss of the stock, but Traveler's denied their claim. FlorExpo and Kendal then filed a complaint for breach of contract, breach of the implied covenant of good faith and fair dealing and declaratory relief.

PLAINTIFFS' CONTENTIONS: Plaintiffs alleged that Traveler's breached its obligations under the policy when it failed to confirm and pay the coverage claim; and that Traveler's breached its duty to act fairly and in good faith by failing to investigate properly the coverage claim.

DEFENDANT'S CONTENTIONS: Defendant denied all contentions. Defendant contended that the stock fell within the Policy's acts or decisions "of any...governmental body" exclusion.

Result

The court granted Traveler's motion to dismiss because while there was a potential claim for coverage under the Policy, the exclusion barred the claim.