La. Federal Judge Refuses to Remand Restaurant’s COVID-19 Coverage Action

NEW ORLEANS — A Louisiana federal judge has refused to remand a restaurant’s COVID-19 business interruption coverage action, ruling that state insurance law did not prevent State Farm Fire and Casualty Co. from removing the action to federal court.

In a Nov. 18 order, Chief Judge Nannette Brown of the U.S. District Court for the Eastern District of Louisiana concluded that removal was proper pursuant to the federal removal statute 28 U.S.C. § 1441, and that the statute is not reverse-preempted by state law.

Muriel’s New Orleans LLC alleges that its “all-risk” policy covers losses arising from the closure …