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Court Refuses to Dismiss Spa's COVID-19 Business Income Claim - Vimarsana News

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...

Federal Court Advances COVID-19 Business Income Suit Despite Virus Exclusion - Vimarsana News

Federal Court Advances COVID-19 Business Income Suit Despite Virus Exclusion

Federal Court Advances COVID-19 Business Income Suit Despite Virus Exclusion A federal district court in Virginia has ruled that a spa’s COVID-19-related business income loss lawsuit can move forward despite a virus exclusion in its insurance policy. The United States District Court for the Eastern District of Virginia, Norfolk Division, denied a motion to dismiss by the spa’s insurer, calling the matter “ripe for judicial determination.” Since 2016, Elegant Massage LLC has owned and operated Light Stream Spa, which provides therapeutic massages in Virginia Beach, Va. On July 22, 2019...