Federal Judge Says Pa. State Court Should Decide COVID-19 Coverage Issues

PHILADELPHIA — The question of whether a Philadelphia clothing store is entitled to coverage for COVID-19 business interruption losses is one for a state court to decide, a federal judge has ruled, finding the case presents “new or unsettled state law matters.”

In a Feb. 11 order, Judge Gene E.K. Pratter of the U.S. District Court for the Eastern District of Pennsylvania granted Selective Insurance Co.’s motion to dismiss the action without prejudice, explaining that Jul-Bur Associates Inc. and Julie’s Bottega may file a declaratory judgment action in state court.

Pennsylvania Governor Tom Wolf issued a series of orders in …