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In a rare policyholder ‘win,’ a Rhode Island judge has refused to dismiss a business interruption lawsuit filed by an adult nightclub against its insurer Scottsdale insurance Co. The suit was based on losses the nightclub suffered due to the mayor’s executive orders calling for its closure because of the pandemic. The case is Atwells Realty Corp. v. Scottsdale Insurance Co., No. PC-2020-04607, 2021 R.I. Super. LEXIS 49 (Super. Ct. June 4, 2021).

The licensed operator of the Desire nightclub, Atwell’s Realty Corp., filed a suit against Scottsdale seeking coverage under its “all-risk” policy based on Washington Governor Gina M. Raimondo and Providence Mayor Jorge O. Elorza’s executive orders closing business operations.

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