Lawyers for seafood chain Legal Sea Food faced skepticism in the U.S. Court of Appeals for the First Circuit during oral arguments over whether the company’s insurer owes money to cover losses caused by the pandemic.
At least 241 similar lawsuits challenging denials to business interruption claims from COVID-19 are on appeal in federal courts, according to the University of Pennsylvania Carey Law School’s COVID Coverage Litigation Tracker. A majority of federal judges thus far have sided with insurers, who have argued that COVID-19 did not result in a physical loss or damage to properties as required under the policies. There are six pending appeals in the First Circuit, and Monday’s argument was the first heard in the Boston-based appeals court by Judges George Z. Singal, Jeffrey Howard and David Barron.
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