California Court Refuses Summary Judgment To Insurer In COVID Case

A Los Angeles state court on Thursday refused to grant an Allianz SE unit’s motion for summary judgment in a COVID-19-related business interruption case that was returned to a lower court after a pro-policyholder state appeals court ruling.

In July, in a rare policyholder victory, the California Court of Appeal in Los Angeles reversed a lower court and reinstated the coverage lawsuit filed by a Los Angeles hotel and restaurant, Marina Pacific Hotel and Suites LLC, stating it was premature to dismiss the litigation, according to the ruling in Marina Pacific Hotel and Sites LLC et al. v. Fireman’s Fund Insurance Co.

Plaintiffs in the case, who are owners of the Hotel Erwin and Larry’s, an adjacent restaurant in the Los Angeles neighborhood of Venice, sued Allianz SE unit Fireman’s Fund in July 2020 under their commercial property insurance policy, which provided $22 million in business interruption coverage.