5th Circuit Affirms Dismissal Of Restaurants’ Bad Faith Suit Stemming From COVID-19

Mealey's (August 4, 2022, 12:39 PM EDT) -- NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on Aug. 1 affirmed a federal court’s ruling that no coverage is owed to insured restaurant owners for business losses incurred as a result of the governmental shutdown orders issued in the wake of the COVID-19 pandemic because the restaurants did not sustain a direct physical loss to their properties, affirming the lower court’s dismissal of the lawsuit seeking coverage and penalties for the insurers’ alleged bad faith denial of their coverage claim....