John N. Ellison,left, and Esther Y. Kim,right, of Reed Smith. Courtesy photos Let History Be Your Guide: Pa.'s Chance to Stem the Ill-Conceived Tide
This article discusses the current Pennsylvania Superior Court split resulting from the Ungarean and MacMiles v. Erie Insurance Exchange, 286 A.3d 331 (Pa. Super. 2022) decisions, and why the Pennsylvania Supreme Court should adopt the reasoning in Ungarean.
July 27, 2023 at 12:58 PM
8 minute read
Courts across the country have largely been ignoring the historical meaning and purpose of all-risk business interruption insurance that has been commonly understood in the insurance and commercial sectors for decades. Fortunately for Pennsylvania businesses that suffered losses as the result of the recent pandemic and government shutdown orders, Pennsylvania courts appear to be bucking that erroneous trend. The Pennsylvania Superior Court in Ungarean v. CNA and Valley Forge Insurance, 286 A.3d 353 (Pa. Super. 2022), correctly adopted the historical meaning of "direct physical loss or damage," holding that coverage exists for pandemic-related business interruption losses as a matter of Pennsylvania law. This article discusses the current Pennsylvania Superior Court split resulting from the Ungarean and MacMiles v. Erie Insurance Exchange, 286 A.3d 331 (Pa. Super. 2022) decisions, and why the Pennsylvania Supreme Court should adopt the reasoning in Ungarean.
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