LITIGATION UPDATE: BUSINESS INTERRUPTION COVERAGE

May 20, 2020

This past Thursday, Judge Valerie Caproni of the Southern District of New York denied a request for a preliminary injunction that would require an insurer to immediately cover Social Life Magazine, Inc.’s business interruption losses arising from the COVID-19 pandemic.  In an oral decision at a telephonic hearing, Judge Caproni reasoned that Social Life’s property had not suffered any damages, and “New York law is clear that this kind of business interruption needs some damage to the property to prohibit you from going.”  Accordingly, the judge concluded that Social Life had failed to show that it was likely to prevail on the merits of its case and denied the preliminary injunction request.  Social Life filed a notice of appeal to the Second Circuit on Sunday, May 17.