Colony Pans 4th Circ. Appeal In Skillets COVID Coverage Fight

Law360 (July 21, 2021, 10:00 PM EDT) -- Colony Insurance Co. urged the Fourth Circuit on Tuesday not to revive the Skillets restaurant chain's suit over uncovered COVID-19 losses, saying there was no physical damage to the eateries' properties.

The insurer said a Virginia federal judge correctly ruled that Skillets LLC was not improperly denied coverage for losses from government shutdown orders when its case was dismissed in March, and that despite any "creative" arguments the restaurant might make, it can't get around the policy's requirement for physical loss or damage.

Specifically, Colony said U.S. District Judge Henry E. Hudson did not err in finding that any structural changes...

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