M&W Case Alert – U.S. District Court Grants M&W Motion To Dismiss Pandemic-Based Business Interruption Claim; State Court Dismisses A Similar Claim

Yesterday was a good day for the insurance industry in New Jersey.  Judge Kugler of the U.S. District Court for the District of New Jersey ruled in M&W’s favor by dismissing with prejudice a putative multi-district class action lawsuit seeking business interruption losses on account of executive orders closing non-essential businesses in the wake of COVID-19.  Shortly thereafter we learned that Judge Polansky of Camden County Superior Court had dismissed a similar claim against a different insurer.  Both of these decisions are likely to be cited across the state as insurers seek release from litigation over business interruption claims prompted by pandemic-related closures and no allegation of physical loss or damage to insured property.

Download This File