Pa. Federal Judge Remands COVID-19 Business Interruption Coverage Action

PITTSBURGH — A Pennsylvania federal judge has remanded a sporting good store’s COVID-19 business interruption action against Allied Insurance Company of America and Nationwide Insurance Co., ruling that the novel coverage issues are better decided by a state court.

In a Sept. 23 order, Chief Judge Mark R. Hornak of the U.S. District Court for the Western District of Pennsylvania held that the legal disputes arising from the COVID-19 pandemic “are deeply tied to Pennsylvania public policy, as well as the intricacies of Pennsylvania contract interpretation,” therefore it is appropriate for the federal court to “step back.”

“General principles of …