Federal Courts Make 2 Basic Errors In Virus Coverage Rulings

By Lorelie Masters, Michael Levine and Nicholas Stellakis (September 30, 2021, 4:43 PM EDT) -- Something odd is going on in the federal courts in COVID-19 coverage cases. As of late September, insurers have won 95% of the rulings in federal courts.[1] In contrast, policyholders have had considerably greater success in state courts.[2]

To be sure, conventional wisdom suggests that policyholders, which are typically plaintiffs, fare better in state courts,[3] but can that account for a significant disparity in state and federal court results?

Perhaps more importantly, most of the policyholder losses, in both federal and state courts, are on motions to dismiss or motions for judgment on the pleadings. Yes, this has happened in cases...

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