CHICAGO — A Paycheck Protection Program loan recipient that was denied eligibility for loan forgiveness because of the nature of its business filed suit in Illinois federal court on July 28 seeking a declaration that the Small Business Administration (SBA) Interim Final Rule, enacted on the day the recipient’s loan funds were disbursed and pursuant to which it was denied loan forgiveness, is contrary to the Coronavirus Aid, Relief, and Economic Security (CARES) Act and an injunction preventing the SBA from applying the rule against the recipient.
ST. LOUIS — Upon reconsideration of a motion by the Federal Trade Commission for summary judgment against a personal protective equipment (PPE) retailer in the commission’s action alleging that the retailer violated the Federal Trade Commission Act (FTC Act) and the Mail, Internet, or Telephone Order Merchandise Rule (Merchandise Rule) in failing to fulfill orders within the retailer’s advertised timeframe during the early months of the COVID-19 pandemic after the parties failed to reach an agreement as to equitable monetary relief, a Missouri federal judge on July 14 granted the motion in all respects and ordered $14,651,185.42 to be placed in escrow to satisfy customer refund requests.
SAN FRANCISCO — A health care provider on July 15 appealed to the Ninth Circuit U.S. Court of Appeals seeking reversal of a California federal court’s dismissal for failure to state a claim the provider’s five complaints seeking full reimbursement for COVID testing services from a medical insurer under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
WASHINGTON, D.C. — A trial court erred in denying a preliminary injunction sought by four Navy SEALs in a case over a COVID-19 vaccine mandate and the District of Columbia Circuit U.S. Court of Appeals should reverse the ruling and remand for entry of the injunction, one of the four SEALs argues in a July 29 appellant brief.
WASHINGTON, D.C. — Family members of deceased workers who accuse Tyson Foods Inc., Tyson Fresh Meats Inc. and executives (together, Tyson) in two state court lawsuits of disregarding worker safety during the early months of the coronavirus pandemic on July 27 waived their right to respond to a July 22 petition for writ of certiorari filed by Tyson in the U.S. Supreme Court challenging a remand order.
ALEXANDRIA, Va. — A district court properly found that no coverage is owed to insureds for business interruption losses sustained as a result of the coronavirus because the virus does not qualify as a pollution condition under the premises pollution liability policy, the insurer maintains in a July 27 appellee brief filed in the Fourth Circuit U.S. Court of Appeals.
NEW ORLEANS — An executive order (EO) requiring federal workers to be vaccinated against COVID-19 or obtain an exemption should not be enjoined as the trial court that issued the nationwide injunction lacked jurisdiction, there’s been no showing that the EO exceeded the president’s authority and the equitable factors for preliminary relief have not been satisfied, the federal government argues in an en banc appellant brief filed July 27 in the Fifth Circuit U.S. Court of Appeals.
NEW ORLEANS — A split panel of the Fifth Circuit U.S. Court of Appeals on July 25 vacated the judgment of a Texas federal court granting a permanent injunction against Texas Attorney General Ken Paxton from enforcing an executive order that prevents school districts from imposing mask mandates to mitigate the spread of COVID-19, holding that public school students with disabilities and underlying medical conditions had not demonstrated that they had suffered an injury that could be redressed by an injunction against Paxton and thus had no standing to bring the lawsuit.
CINCINNATI — A federal judge in Ohio on July 27 issued a classwide preliminary injunction preventing disciplinary or separation actions from being taken against members of the U.S. Air Force and Space Force who refuse to get the COVID-19 vaccine; the order was issued two days after the defendants filed an appellant brief in the Sixth Circuit U.S. Court of Appeals challenging an earlier preliminary injunction in the case that barred action only against the named plaintiffs.
PROVIDENCE, R.I. — A Rhode Island justice on July 27 granted defendant insurers’ motion to stay their insureds’ lawsuit seeking coverage for their losses arising from the coronavirus pandemic pending resolution of a related New York action filed by an insurer, finding that New York is the proper venue to hear the instant matter.
WASHINGTON, D.C. — As circuit justice for the Ninth Circuit U.S. Court of Appeals, U.S. Supreme Court Justice Elena Kagan on July 12 granted a nursing home’s application for an extension until Aug. 29 to file a petition for writ of certiorari challenging the Ninth Circuit’s affirmance of a district court’s order remanding to state court a wrongful death suit filed by the family of a man who died in the nursing home after contracting COVID-19.
RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals on July 25 affirmed a lower federal court’s dismissal of Florida restaurant operators’ breach of contract lawsuit seeking coverage for their business losses stemming from the coronavirus pandemic, finding “no reversible error” in the lower court’s ruling.
NEW YORK — A clothing boutique owner on July 22 filed a notice of appeal to the Second Circuit U.S. Court of Appeals seeking reversal of a lower federal court’s dismissal of its breach of contract and declaratory judgment lawsuit seeking business interruption and property damage coverage for its losses arising from the coronavirus and subsequent shutdown orders.
SAN FRANCISCO — California’s derivative injury doctrine does not bar a claim for COVID-19 exposure against an employer brought by an employee’s spouse, a worker and his wife argue in their petitioner brief filed July 22 in the California Supreme Court after the high court granted review of questions certified by the Ninth Circuit U.S. Court of Appeals concerning an employee’s exposure to COVID-19 at work and an employer’s responsibilities.
ALBANY, N.Y. — The owner and operator of numerous restaurants on July 12 moved in the New York Court of Appeals for leave to appeal the First Department New York Supreme Court Appellate Division’s ruling that affirmed a lower court’s dismissal of its commercial property coverage lawsuit arising from an alleged tens of millions of dollars in revenue loss prompted by the coronavirus pandemic, arguing that the issue on appeal “is indisputably of statewide, public importance, representing one of the most consequential insurance law questions to arise under New York law in decades.”
WEST PALM BEACH, Fla. — A Florida judge on July 20 held that an insured has asserted sufficient facts to demonstrate a claim for declaratory relief and breach of contract against certain defendant insurers regarding their policies’ specialty coverages for “Closings Due to Death or Disease” and “Cancellation of Bookings Due to Contagious or Infectious Disease” but dismissed with prejudice the insured’s claims that the coronavirus physically damaged its property.
RALEIGH, N.C. — A North Carolina appeals panel on July 19 affirmed a lower court’s dismissal of a residential rental property owner’s breach of contract lawsuit seeking coverage for its financial losses resulting from Dare County’s prohibition on entry to the county by nonresident visitors in response to the coronavirus pandemic, rejecting the insured’s contention that the policy’s dwelling and loss of use coverage provisions were triggered.
HARTFORD, Conn. — An insurer on July 13 moved for judgment one month after a Connecticut judge granted its motion to strike the Mohegan Tribal Gaming Authority’s breach of contract and bad faith complaint seek coverage for its economic losses arising from the closure of the insured’s operations because of the coronavirus pandemic.
CINCINNATI — The Sixth Circuit U.S. Court of Appeals on July 6 affirmed a lower federal court’s ruling that an insurance policy’s contamination exclusion bars coverage for a power-conveyance and energy management solutions provider’s lawsuit seeking coverage under the policy’s time element provision for its business interruption expenses related to the coronavirus, finding that the policy’s plain language demonstrates that the exclusion applies to the time element section.
PORTLAND, Ore. — A Ninth Circuit U.S. Court of Appeals panel on July 18 affirmed the confirmation of an arbitral award worth more than $16.6 million against a Canadian tickets provider in favor of Costco Wholesale Corp., which prevailed on claims that the provider kept millions of dollars in funds from Costco for tickets for events that were canceled, some of which had to be refunded.