Judge Denies Vegas Eatery Chain Virus Shutdown Coverage

Law360 (February 26, 2021, 6:30 PM EST) -- A Nevada federal court axed a Las Vegas breakfast chain's proposed class suit seeking coverage of losses tied to Nevada's COVID-19 shutdown order, finding the eateries' loss of their ability to serve onsite diners was simply not covered by their policy.

U.S. District Judge Kent J. Dawson granted U.S. Specialty Insurance Co.'s bid to dismiss the action filed by Egg Works LLC of Clark County. Government closure during a pandemic is not an "insured event" and the ability to serve onsite customers was not an "insured product" under the restaurant recovery policy, the judge said.

"The parties entered a contract that...

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