STORY FROM: COVID-19 Litigation Report

Philadelphia Restaurant Sues Seeking Coverage for Coronavirus Business Losses

PHILADELPHIA — Owners of a Philadelphia restaurant asked a federal judge to rule that losses stemming from statewide closure of certain businesses during the COVID-19 outbreak are covered under an all risk policy issued to the eatery.

LH Dining LLC, contends in a declaratory judgment action filed April 10 that emergency or “stay-at-home” orders by state and local agencies prohibiting customers from entering restaurants during the outbreak constitute an act of Civil Authority triggering coverage.

“Under the policy, insurance is extended to apply to the actual loss of business income sustained and the actual necessary and reasonable extra expenses ...

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