Court Refuses to Dismiss Spa's COVID-19 Business Income Claim
Friday, December 18, 2020 On December 9, 2020, in Light Stream Spa v. State Farm Mutual Automobile Ins. Co., No 2:20-cv-00265-RAJ-LRL (E.D.V.A. Dec. 9, 2020), a Virginia federal court refused to dismiss a majority of the policyholder’s breach of contract claim and its request for bad faith damages, declaratory judgment and class certification, all stemming from the insurers’ denial of coverage for COVID-19 related business income losses. The policyholder, a spa, purchased an all-risk property insurance policy with coverage for, among other things, loss of business income and e...