Dust Obscures Eleventh Circuit’s Ruling on “Direct Physical Loss”

Opening old book dust rises

The appeals court appears to deviate from even its own understanding of “direct physical loss” under controlling Florida law.

October 12, 2020
Walter J. Andrews, Michael S. Levine & Daniel Hentschel - Hunton Insurance Recovery Blog

On August 18, 2020, the United States Court of Appeals for the Eleventh Circuit affirmed a District Court’s 2018 ruling that Sparta Insurance Company need not cover a south Florida restaurant’s lost income and extra expenses resulting from nearby road construction. But, in doing so, the appeals court appears to deviate from even its own understanding of “direct physical loss” under controlling Florida law.

In the underlying coverage action, the insured, Mama Jo’s Inc. operating as Berries in the Grove, sought coverage under its “all risk” commercial property insurance policy for business income loss and incurred extra expenses caused by construction dust and debris that migrated into the restaurant.

Reprinted courtesy of Walter J. Andrews, Hunton Andrews Kurth, Michael S. Levine, Hunton Andrews Kurth and Daniel Hentschel, Hunton Andrews Kurth

Mr. Andrews may be contacted at wandrews@HuntonAK.com
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Hentschel may be contacted at dhentschel@HuntonAK.com



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