Barbershops May Not Amend COVID-19 Coverage Complaint Following Dismissal, Calif. Federal Judge Rules

SAN DIEGO — A California federal judge has refused to allow two San Diego barbershops seeking coverage for COVID-19-related business interruption losses to amend their complaint following dismissal of the action, ruling that it would be futile because they failed to allege any “direct physical loss of or damage to property.”

In an Oct. 1 order, Judge Cathy Ann Bencivengo the U.S. District Court for the Southern District of California explained that Pappy’s Barber Shops Inc. and Pappy’s Barber Shop Poway Inc.’s addition of allegations that their insured premises were likely infected by the COVID-19 virus does not establish “direct …