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NEWS & NOTES

Argument that COVID-19 does not cause physical damage prevails in early business interruption ruling.

Lunes, Julio 13, 2020

On July 2, 2020, a Michigan state court issued one of the first apparent decisions on the merits involving a business interruption claim arising from COVID-19. In that ruling, Gavrilides Management Company, et al. v. Michigan Ins. Co., the judge granted insurer’s motion to dismiss. In applying Michigan law, the court analyzed the policy and determined that mere loss of use or access does not qualify as the “direct physical loss or damage” required for coverage. Moreover, as a second basis for dismissal, the court determined that the policy at issue contained a virus exclusion that applied unambiguously to COVID-19.

In an attempt to avoid dismissal, the claimant argued that the government orders were the cause of the interruption rather than COVID-19 itself. In applying the virus exclusion, however, the judge rejected that argument.

Although the Gavrilides Management ruling is under Michigan law, it considered arguments that are similar to countless other business interruption cases pending around the nation. Given the novel nature of COVID-19, also known as the “novel coronavirus,” courts may look to the Gavrilides Management ruling as persuasive authority. Of course, other decisions will turn on the specific language of the policies, specific exclusions, and the nature of each state’s law on interpretation of contracts and insurance laws. Whether courts do consider Gavrilides Management persuasive authority, insurers will almost certainly cite to it as authority for the proposition that COVID-19 does not cause physical damage, and therefore, does not trigger coverage for business interruption.

Compilation of the U.S. Securities and Exchange Commission’s Advisories in Response to COVID-19.

Martes, Abril 21, 2020

The information contained herein is not legal advice, is not to be acted on as such, and is subject to change without notice.

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Force Majeure and Other Issues Related to the Coronavirus (COVID-19) Pandemic – Updated April 6, 2020.

Miércoles, Marzo 25, 2020

The information contained herein is not legal advice, is not to be acted on as such, and is subject to change without notice.

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Coronavirus (COVID-19) Pandemic Assistance Programs.

Miércoles, Marzo 25, 2020

The information contained herein is not legal advice, is not to be acted on as such, and is subject to change without notice.

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Paul L. Robinson joins Homer Bonner Jacobs Ortiz as a partner.

Miércoles, Septiembre 25, 2019

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Russell Koonin joins Homer Bonner Jacobs Ortiz as partner.

Lunes, Septiembre 16, 2019

Peter Homer Awarded 2020 Lawyer of the Year for his work in Securities Regulation within Miami.

Miércoles, Agosto 21, 2019

Homer Bonner Jacobs changes its name to Homer Bonner Jacobs Ortiz in recognition of Jose Ortiz joining the firm.

Lunes, Junio 24, 2019

The firm helps banking client win a directed verdict in federal jury trial in Middle District of Florida.

Jueves, Abril 4, 2019

Jose Ortiz joins Homer Bonner Jacobs.

Martes, Marzo 12, 2019

The firm helps SEACOR win dismissal of plaintiff’s trade secret and breach of contract claims for fraud on the court.

Martes, Marzo 5, 2019

Andrew R. Herron and Brian Lechich join Homer Bonner Jacobs.

Miércoles, Febrero 27, 2019