ARTICLE
26 August 2020

California State Court Grants Demurrer In Favor Of Insurer: COVID-19 Does Not Constitute Physical Loss

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Wilson Elser Moskowitz Edelman & Dicker LLP

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More than 800 attorneys strong, Wilson Elser serves clients of all sizes across multiple industries. It maintains 38 domestic offices, another in London and enjoys more extensive international reach as a founding member of Legalign Global.  The firm is currently ranked 56th in the National Law Journal’s NLJ 500.
In the California state court's transcript dated August 4, 2020, the plaintiffs argued that since coronavirus was on the premises, there was a physical loss of or damage to the premises.
United States California Coronavirus (COVID-19)

In the California state court's transcript dated August 4, 2020, the plaintiffs argued that since coronavirus was on the premises, there was a physical loss of or damage to the premises. California Mutual Insurance asserted that irrespective of why the business shut down, there was no direct physical damage to the property that caused the plaintiffs' business income loss. In the court transcript, Judge Villarreal analyzed case law regarding physical loss and damage and stated that "I am not sure that COVID [sic] creates that physical change."  

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