STORY FROM: COVID-19 Litigation Report

Calif. Restaurant Owner Says COVID-19 Closure Orders Caused ‘Physical Loss of or Damage’

LOS ANGELES — The owner of several California and Arizona casual and upscale restaurants has sued Mitsui Sumitomo Insurance USA Inc., demanding coverage for business interruption losses it sustained when it was forced to shut down or limit operations due to the COVID-19 virus and related government closure orders.

In a complaint removed to the U.S. District Court for the Central District of California on Aug. 7, The Madera Group LLC contends that its eateries suffered “direct physical loss of or damage” as the result of a covered cause of loss, triggering coverage under its all-risk policy.

“The closure orders ...

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