Q1 2022 Legal Update

Pooja S. Nair, a partner at Ervin Cohen & Jessup LLP compiles recent legal news affecting the restaurant, food and beverage and hospitality industries for Modern Restaurant Management (MRM) magazine.LitigationInsurance Coverage for COVID Claims Largely Rejected by Appellate Courts: Throughout the country, appellate courts are reviewing insurance coverage lawsuits brought by restaurants who were forced to close due to COVID-19 pandemic shutdown orders.  These restaurants brought claims for their commercial insurance carriers to cover pandemic losses, and the insurers argued that COVID losses are not physical losses and therefore not covered.  By and large, district courts sided with the insurers, and appellate courts have affirmed these decisions, leaving little hope for restaurants in this area.  Recent opinions in favor of insurance companies include a March 16, 2022 unpublished Ninth Circuit pane opinion in Steven Baker v. Oregon Mutual Insurance Co., 21-51097 and multiple…