R.I. Judge Refuses to Toss Strip Club’s COVID-19 Coverage Action

PROVIDENCE, R.I. — A Rhode Island judge has refused to dismiss a strip club’s COVID-19 coverage action against Scottsdale Insurance Co., finding the club has plausibly alleged coverage is available under the policy’s Civil Authority provision.

In a June 4 order, Judge Brian Stern found the plaintiff adequately pled that COVID-19 damaged property within one mile of its premises and that the governor shut down the business because of the virus being spread throughout the state, including the properties within one mile of the club.

Atwells Realty Corp. operates “Desire,” a Providence, R.I., adult entertainment nightclub. Beginning in March 2020, …