New Orleans Restaurant Permitted to Amend Complaint in COVID-19 Coverage Action

NEW ORLEANS — A Louisiana federal judge has allowed the owner of a New Orleans restaurant to file an amended complaint against State Farm Fire and Casualty Insurance Co. in a COVID-19 insurance action, ruling that the allegations as pled do not provide a basis for coverage.

In an April 26 order, Chief Judge Nannette Brown of the U.S. District Court for the Eastern District of Louisiana found Muriel’s New Orleans LLC failed to allege “direct physical loss” to covered property as required by the policy because it did not claim that COVID-19 physically infiltrated its restaurant.

Muriel’s temporarily closed …