Court: ND Tx 05/12/2025 Motion to Dismiss Granted in COVID-19 Business Interruption Dispute
A court of the Northern District of Texas granted multiple insurers’ motions to dismiss with prejudice in a COVID-19 business interruption dispute, holding that under persuasive authority from the Fourth Circuit, the policy’s Civil Authority Provision only covers imminent or actual physical loss and finding that the insureds did not plausibly allege that any civil orders causing the insureds’ hotels to close were responding to an actual or imminent threat of physical loss, damage, or destruction.