9th Circ. COVID Coverage Ruling Misapplies Burden Of Proof

By Lee Epstein (October 20, 2021, 5:26 PM EDT) -- In a series of recent rulings, the U.S. Court of Appeals for the Ninth Circuit continued a federal appellate trend by affirming the dismissal of three COVID-19 insurance coverage cases.[1]

In Mudpie Inc. v. Travelers Casualty Insurance Co. of America, the most expansive of the three opinions, the Ninth Circuit on Oct. 1 affirmed the dismissal after concluding, in part, that the policyholder failed to sufficiently allege direct physical loss of or damage to property.[2]

In reaching that conclusion, the Ninth Circuit placed the burden of satisfying the "direct physical loss of or damage to" property limitation on the policyholder as...

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