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Analysis

Club Shooting Decision Widens Coverage For 'Loss Of Use'

Law360 (October 31, 2018, 7:19 PM EDT) -- A California appeals court ruled recently that the revocation of a venue’s nightclub license after a fatal shooting triggered the “loss-of-use” provision in a liability insurance policy, fortifying Golden State policyholders in similar disputes by clarifying that the total shutdown of a property is not required for the valuable coverage to apply.

In a unanimous Oct. 25 opinion, a three-judge panel of the state’s Fourth Appellate District reversed a lower court and held that Scottsdale Insurance Co. is obligated to cover a judgment that Thee Sombrero Inc. obtained against Scottsdale’s insured, security contractor Crime Enforcement Services. Thee Sombrero, the owner of the...

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