Tuesday, January 26, 2021
INTRODUCTION
Two recent Washington state trial court decisions provide policyholders hope that they may be able to obtain insurance coverage for business interruption losses arising from Governor Inslee’s COVID-19 “shut down” orders. This alert will provide background regarding COVID-19 coverage cases nationally and a discussion of these recent Washington court decisions.
THE NATIONAL LANDSCAPE
Policyholders in the United States have filed almost 1,500 cases seeking insurance coverage for COVID-19 losses. Insurers commonly respond by filing early motions to dismiss for “failure to state a claim.” Courts in approximately 30 states have issued decisions on such early motions, with:
Insurers prevailing approximately 85 percent of the time, resulting in over 100 dismissals;
The State of Play In Pennsylvania
According to the UPenn Covid Tracker, approximately 180 COVID-19-related coverage suits have been brought in Pennsylvania courts. As is the case nationally, most of the Pennsylvania cases are pending in federal courts. Also, according to the UPenn Covid Tracker, there have been 12) “merits” decisions by Pennsylvania courts’ rulings on insurer motions to dismiss. Nine of these decisions have been issued by the Eastern District of Pennsylvania, (1) by the Western District of Pennsylvania and (2) by the Court of Common Pleas of Philadelphia County.
Decisions by Pennsylvania State Courts (Pennsylvania Court of Common Pleas)
Ridley Park Fitness v. Philadelphia Indem. Ins. Co.