Facts

Best Auto Repair, Inc. had a business insurance policy issued by Travelers Casualty Insurance Company of America. After the outbreak of the COVID-19 pandemic, Best Auto and other business insured by Travelers were required to cease operations due to government orders. On January 15, 2021, Best Auto, along with thirteen other companies, filed suit against Travelers in Los Angeles County Superior Court. Travelers removed the suit to federal court.

PLAINTIFFS' CONTENTIONS: The plaintiffs contended that they had insurance policies issued by the defendant; that the policies provided coverage for direct physical loss of or damage to insured property; that the COVID-19 virus had entered into their premises and caused damage to their property; that they suffered losses as a result of this damage and as a result of the government orders requiring them to cease normal operations; and that the defendant had wrongfully denied their claims for coverage. As a result, the plaintiffs contended the defendant was liable for breach of contract; breach of the implied covenant of good faith and fair dealing; bad faith denial of insurance claims; unfair business practices; intentional misrepresentation; constructive fraud; unjust enrichment; declaratory relief; injunctive relief; breach of fiduciary duty; negligence; and negligent misrepresentation.

DEFENDANT'S CONTENTIONS: The defendant denied any wrongdoing or liability and all the plaintiffs' material allegations. Moreover, the defendant contended that the plaintiffs' claims were not covered under the policy.

Result

The court granted the defendant's motion to dismiss without leave to amend.