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A federal appeals court Tuesday affirmed dismissal of a COVID-19-related business interruption lawsuit filed against Lloyd’s of London underwriters by two pizzerias.
Plaintiffs in the putative class-action lawsuit operate two properties, a bar and restaurant in Coral Springs, Florida, and another in Boca Raton, Florida, according to the ruling by the 11th U.S. Circuit Court of Appeals in Atlanta in GIO Pizzeria & Bar Hospitality, LLC, GIO Pizzeria Boca, LLC v. Certain Underwriters at Lloyd’s, London.
The brief opinion cited the appeals court’s ruling earlier this month in SA Palm Beach, LLC v. Certain Underwriters at Lloyd’s London in favor of the insurer, in affirming a decision by the U.S. District Court in Fort Lauderdale, Florida. The lawsuit was originally filed in the U.S. District Court for the Southern District of New York in 2020.
“Because coverage under Plaintiffs’ policies requires direct physical loss or damage to the covered property, and the losses here resulted from the intangible harm caused by COVID-19, Plaintiffs’ claimed losses and expenses are not covered under the policies,” the three-judge appeals court panel said.
Attorneys in the case did not respond to requests for comment.