Potter Stewart U.S. Courthouse in Cincinnati, Ohio, U.S. District Court for the Southern District of Ohio and the U.S. Court of Appeals for the Sixth Circuit. (Photo: Wikipedia) 6th Circ. Weighs In on Another 'Direct Physical Loss' Claim During COVID-19, Awaiting State Supreme Court Ruling
"Regardless of whether 'loss' means 'deprivation' or 'failing to keep possession' or whether 'property' includes leaseholds or buildings, this court has squarely determined that 'direct physical loss of' property does not mean what [plaintiffs] say[] it means," the federal appeals court wrote. "It refers to the direct physical loss of property, not the use of property."
June 23, 2022 at 01:19 PM
4 minute read
As the wait continues for the Ohio Supreme Court's ruling as to what "direct physical loss of or damage to property" means in regard to recovering lost business income from COVID-19 shutdown orders, the U.S. Court of Appeals for the Sixth Circuit sided with an insurance company, relying on a September ruling in a similar case.
In the present case, the plaintiffs own and operate restaurants in Ohio, Indiana, Florida, Michigan and Pennsylvania. All filed claims with Zurich American Insurance Co. to recover lost business income they attributed to government orders restricting in-person dining in an effort to stop the spread of COVID-19, according to the circuit court's opinion filed June 13.
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