Coronavirus-related business interruption cases have not been met with open arms throughout U.S. apex courts—but one that’s pending in the New York Court of Appeals could play a balancing role for policyholders, given the Empire State’s hefty industry.
The New York case is Consolidated Restaurant Operations v. Westport Insurance.
CRO of Texas runs and franchises seven restaurant brands in the U.S. and internationally, including III Forks, Cantino Laredo and El Chico.
Its attorney Robin Cohen, chair of Cohen Ziffer Frenchman & McKenna, recently filed a reply for the New York Court of Appeals’ review, to the insurer’s attorney, Rob Santoro of DLA Piper.
In the U.S., only a divided 3-2 Vermont Supreme Court—among all apex courts—has ruled in favor of a policyholder on the issue, when it revived a shipbuilder’s lawsuit in September.
In court papers, Cohen says the virus that causes COVID-19 infiltrated and transformed the insured’s properties into “vectors for the disease” for extended periods of time, impairing their intended uses.
Click here to read the full article.