Unique Argument Scores Rare Victory for Cinemark's COVID-19 Insurance Claim
A couple of allegations by Cinemark seems to have swayed the court here: that COVID-19 was present in its facilities and the virus had physically changed the air.
In a rare ruling, Cinemark theaters won the chance to keep litigating against its insurance company, seeking losses under a $500 million policy for business interruption from COVID-19.
U.S. District Judge Amos Mazzant of the Eastern District of Texas ruled that Cinemark Holdings Inc.’s allegations that COVID-19 entered its facilities—infecting 1,700 employees and physically changing the content of the air—were enough to survive Factory Mutual Insurance Co.’s arguments that the case should face an early dismissal.
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