Coronavirus Litigation: The Week In Review

By Morgan Conley
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Law360 (September 3, 2020, 6:28 PM EDT) -- Travelers dodged a downtown Los Angeles restaurant's bid for coverage of claims stemming from the COVID-19 pandemic and the Trump campaign urged a Pennsylvania federal court to adjust its order halting a challenge to the state's use of drop boxes for collecting mail-in votes the same week the state's highest court agreed to consider the protocols.

While courts across the country are altering procedures, restricting access and postponing certain cases to stem the spread of the coronavirus, the outbreak has also prompted a wave of litigation across the country.

Here's a breakdown of some of the COVID-19-related cases from the past week.

Insurance

A California federal judge ruled the Travelers Indemnity Co. of Connecticut need not cover a downtown Los Angeles restaurant's claims stemming from the COVID-19 pandemic. The court found in an order Friday that the Mediterranean eatery had not shown that it is entitled to coverage under the policy as it has suffered no "direct physical loss or damage."

A group of Denny's and Ruby Tuesday franchise restaurants urged an Illinois federal judge to ax State Auto Property and Casualty Insurance Co.'s suit seeking to avoid covering the eateries' pandemic-related losses, arguing that the action raises exactly the same issues as the group's suit against the insurer in Ohio state court.

A Western Pennsylvania sporting goods store, Venezie Sporting Goods LLC, argued Tuesday that a state court should be the first to decide whether part of its business insurance policy, cited in its insurer's denial of coverage for COVID-19-related losses, should be invalid under state law.

The store told the court its lawsuit against Nationwide Insurance Co. and Allied Insurance Company of America should be decided by a state court and not a federal one because "anti-concurrence" language in its insurance policy — which says that when a loss is caused by both covered and noncovered events, the exception to coverage wins out — goes against the state's public policy,

Public Policy

Whether or not Pennsylvania voters can use drop boxes as an alternative to the U.S. Postal Service or in-person voting amid the COVID-19 pandemic is being weighed by a Pennsylvania federal court as well as the state's Supreme Court.

In the federal action, President Donald Trump's reelection campaign pressed the court Friday to set aside Pennsylvania ballots cast via drop boxes and keep officials from counting them until state and federal courts rule on whether they're permitted under the state's election law.

The Supreme Court of Pennsylvania agreed Tuesday to use its "extraordinary jurisdiction" power and take up the state's Democratic Party's suit against Secretary of the Commonwealth Kathy Boockvar that seeks to affirm the use of drop boxes as an alternative to the U.S. Postal Service or in-person voting amid the COVID-19 pandemic.

A Florida appeals court on Friday paused a state judge's decision to block Gov. Ron DeSantis' plan for reopening schools for in-person instruction amid the coronavirus pandemic, though the appeals court turned down the governor's request to send the case straight to the Sunshine State's highest court. The short order reinstated an automatic pause on the judge's order blocking DeSantis' plan, meaning that as things stand, the Republican governor can go ahead with the reopening.

More than 150 GOP lawmakers, led by Minority Leader Kevin McCarthy of California and joined by several constituents, asked the D.C. Circuit Monday to block proxy voting in the U.S. House of Representatives and overrule a federal district judge who said congressional officials cannot be sued over internal rules.

The group wants the appellate court to reverse a district judge's decision to dismiss their suit after finding the U.S. Constitution's speech or debate clause gives congressional officials immunity from lawsuits over legislative acts such as voting, arguing the ruling broke with precedent and would keep courts from intervening even if Congress adopted discriminatory voting rules.

A federal judge said Monday a Philadelphia-area pool supply store, Kenwood Pools, can proceed with a proposed class claim that its right to equal protection was violated when, unlike several nearby competitors, it was denied a waiver to remain open when Gov. Tom Wolf shuttered non-essential businesses in mid-March due to the pandemic.

Media and Entertainment

A D.C. federal judge gave AMC Entertainment Holdings Inc. the green light Friday to repurchase several theaters it shed in a deal with the Justice Department for clearance of its $1.2 billion Carmike Cinemas acquisition after the COVID-19 pandemic forced the buyer into liquidation.

Vivera Pharmaceuticals Inc. dismissed its federal defamation lawsuit Friday against Gannett, several executives and four USA Today reporters that sought $500 million in damages because of a story that criticized Vivera's COVID-19 antibody tests, saying it has plans to refile its claims in state court.

The foundation behind the "Terrible Towel" rally towel beloved by Pittsburgh Steelers fans agreed to drop a trademark lawsuit against an apparel company that had been selling "Terrible Mask" COVID-19 face masks. The consent decree filed Friday will end a lawsuit lodged by the Eamon Foundation, which accused Time In LLC of selling COVID-19 masks that flagrantly infringe its trademarks passed down from the late Myron Cope, a popular Steelers broadcaster.

Hospitality

Travel company Tauck Inc. urged a Connecticut federal court Monday to toss a proposed class action alleging that it withheld insurance premiums customers paid for trips canceled due to COVID-19, saying the class representative is not legally entitled to a refund.

A carpet company in Georgia and a noodle bar in Michigan were hit with unrelated lawsuits from their respective employees claiming the establishments terminated them after they took time off from work to quarantine after testing positive for COVID-19.

Princess Cruises faced two class actions over its handling of COVID-19 outbreak aboard its vessels. The cruise line and its parent company Carnival Corp. filed a bid to dismiss one of the proposed class actions Friday, telling a California federal court that the passenger suing can't show her symptoms were related to the coronavirus.

In another action, a proposed class asked a California federal judge for certification of its suit alleging that the company allowed class members to board the Grand Princess ship despite knowing passengers from a previous voyage showed COVID-19 symptoms, therefore negligently exposing more than 2,400 passengers to the novel coronavirus on its Grand Princess vessel traveling from San Francisco to Hawaii.

Class Action

A Florida man told a federal court in Orlando on Tuesday that he wants to drop a proposed class action against Air Canada that claimed the airline breached its ticket contract by not refunding the ticket purchase price for flights canceled due to the COVID-19 pandemic.

Wells Fargo on Monday urged a Texas federal judge to throw out a proposed class action accusing the bank of having given improper preferential treatment to bigger borrowers seeking Paycheck Protection Program loans, arguing the customer behind the suit can't slip past a prior arbitration agreement with the bank.

The College Entrance Examination Board urged a California federal judge Monday to send to arbitration a proposed class action alleging that its online Advanced Placement exams, administered remotely during the coronavirus pandemic, were filled with technical glitches, saying students signed arbitration agreements.

Legal Industry

In a letter Tuesday more than 30 former immigration judges voiced support for New Jersey lawyers' lawsuit seeking to stop in-person hearings at Newark Immigration Court during the COVID-19 pandemic, saying the court needs to prioritize people's health over case completion numbers.

Georgia Supreme Court Chief Justice Harold D. Melton announced Monday during an emergency meeting of the Georgia Judicial Council that the state will likely resume jury trials in October once courts develop and submit plans to the state for how in-person proceedings will be handled in light of the continuing coronavirus pandemic.

Native American
The Oklahoma-based Shawnee Tribe fought a bid to dismiss its suit alleging the U.S. Treasury Department selected an unfair method for allocating funds under the Coronavirus Aid, Relief and Economic Security Act Tuesday. The tribe says the government relied on "false" population data and acted arbitrarily and capriciously under the Administrative Procedure Act in determining that the tribe has a population of zero when it actually has more than 2,100 enrolled members.

--Additional reporting by Joyce Hanson, Matt Fair, Lauren Berg, Mike LaSusa, Daphne Zhang, Matthew Santoni, Matthew Perlman, Tiffany Hu, Max Kutner, Y. Peter Kang, Jon Hill, Lauren Berg, Sarah Martinson and Rosie Manins. Editing by Peter Rozovsky.

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