As reported by Business Insurance and Law360, a New York federal district court refused to dismiss COVID-19-related performance disruption coverage based on what it said is ambiguous policy language, in a lawsuit filed by Jujamcyn Theaters, LLC.  Managing Partner Jeffrey Schulman, who represents Jujamcyn, spoke with Business Insurance about the ruling.

Jujamcyn argued that its “performance disruption” policy provided coverage for “each loss” and sustained “loss” to each of its five theaters.  Pacific Indemnity Company (Chubb) argued that all of Jujamcyn’s “loss” stemmed from one “occurrence”—the COVID-19 pandemic.  The court held that the “language in the Pacific Policy is ambiguous.”

Partner Kirk Pasich and Managing Associate Stephen Wah also represent Jujamcyn.  The case is Jujamcyn Theaters LLC v. Federal Insurance Co. and Pacific Indemnity Co., and is pending in the Southern District of New York.

Read the Business Insurance article here.

Read the Law360 article here. (Subscription required)