STORY FROM: COVID-19 Litigation Report

Dallas Private Wine Club Sues Insurers for COVID-19 Shutdown Losses

DALLAS — A Dallas wine club that was forced to shut down its event operations following the issuance of COVID-19 civil authority orders contends in a lawsuit that its business losses are covered because it has suffered direct physical loss of or damage to its property.

In a May 8 complaint filed against Sentinel Insurance Company Ltd. and The Hartford Fire Insurance Co. in the U.S. District Court for the Northern District of Texas, Graileys Inc. d/b/a Graileys Fine Wines contends that “contamination, and potential contamination, of the insured premises by COVID-19 constitutes a direct physical loss.”

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