On May 28, 2021, the United States District Court for the Western District of Washington dismissed claims for alleged losses associated with COVID-19. Nguyen, et al. v. Travelers Cas. Co, et al, 2:20-CV-00597-BJR (W.D. Wash. May 28, 2021). The lawsuit is a consolidated action addressing claims under first-party “all risk” property policies. Judge Barbara Rothstein granted the defendant insurers’ motions to dismiss. In line with the majority of courts, the Court determined that there was no coverage for the claims. Among other things, the Court held:
- COVID-19 did not cause direct physical loss of or damage to property.
- The Civil Authority provisions did not provide coverage.
- The virus exclusion barred coverage.
In reaching this result, the Court declined to follow two Washington state trial court decisions, finding their reasoning to be unpersuasive.
Disclaimer: The opinions expressed in this blog are those of the author and do not necessarily reflect those of Soha & Lang, P.S. or its clients.