The recent Law360 article, “4th Circ. Affirms Dismissal of Fla. Restaurant Virus Suit,” reported on the appellate court’s decision that affirmed the lower court’s in favor of Stewart Smith client Colony Insurance. The underlying case involved a lawsuit filed by Skillets Restaurants, which operates nine restaurants in southwest Florida, against its insurer, Colony Insurance, for denying business interruption coverage for losses incurred when the pandemic forced the restaurants to temporarily halt in-person dining.
In March 2021, a Virginia federal judge found in favor of Colony, which argued that coverage was not required because there was no physical loss or damage to the restaurants: conditions stipulated in the insurance policy needed to trigger coverage.
Law360 last reported on this case in July 2021.