In an unusual win for policyholders, a Texas judge has chosen not to dismiss a certain theatre chain’s Covid-related lawsuit according to a Claims Journal article from May 6th. In it they say:
“A federal judge in Sherman, Texas on Wednesday ruled against an insurer that sought to dismiss a $500 million COVID-19 business interruption lawsuit by the nation’s third-largest chain of movie theaters.
The decision broke a month’s-long losing streak for policyholders seeking cover income lost because of pandemic-related restrictions.
It was the first ruling in months that hadn’t outright dismissed a claim of this nature according to an article from May 10th. Th Insurance Journal reports,
“Mazzant’s ruling was the first of any state or federal judge since March 31 that rejected in whole an insurer’s motion to dismiss a COVID-19 business-interruption lawsuit, according to a litigation tracker maintained by the University of Pennsylvania’s Carey Law School. During that time, two judges granted partial dismissal and 48 judges fully dismissed COVID-19 lawsuits or granted summary judgment for the insurer.
Cinemark, headquartered in Plano, Texas, operates 332 theaters with 4,522 screens in 42 states and an additional 200 theaters in 17 other countries, according to its civil complaint. The chain purchased a policy from FM Global that covered up to $500 million in damages from “all risks of physical loss or damage” except perils specifically excluded. Communicable diseases were a covered cause of loss.”
This could mean future victories for other similar claims in the near future.