Dallas Restaurant Group May File Amended Complaint in COVID-19 Coverage Action, Federal Judge Rules

DALLAS — A Texas federal judge has allowed a Dallas restaurant group to file an amended complaint in a COVID-19 business interruption coverage action, ruling that in its current pleading, it failed to show that its properties sustained “direct physical loss or damage” as required by the policy.

On Oct. 7, Judge Sidney Fitzwater of the U.S. District Court for the Northern District of Texas granted Cincinnati Insurance Co.’s motion to dismiss Vandelay Hospitality Group LP d/b/a Hudson House’s first amended petition.

Vandelay initially filed the action in the Dallas County District Court, asserting that government shutdown orders issued in …