Illinois Court docket Refuses to Dismiss Enterprise Insurance Swimsuit – Enterprise Insurance
An Illinois court on Thursday refused to bring a construction development and management company against a CNA Financial Corp.
New York-based construction management company JDS Construction Group LLC and Nyack, New York-based 9 Dekalb Fee Owner LLC, a construction developer developing an 80-story condominium tower in Brooklyn, have filed an interruption lawsuit against CNA entity Continental Casualty Co Filed in state court in Chicago, according to the judgment in JDS Construction Group, LLC and 9 Dekalb Fee Owner LLC v Continental Casualty Co.
According to the judgment, both JDS and 9 DeKalb are insured under a builder risk policy for the period from March 2019 to June 2022.
In refusing to dismiss the case, the court said plaintiffs allege the virus caused the direct physical loss or damage necessary for coverage under the policy.
For example, the complaint states that "the COVID-19 droplets or nuclei were present on solid surfaces and in the air in insured property and that the virus, a physical substance, is attached to and adhered to the properties of the plaintiffs".
“Plaintiffs also make detailed allegations about how the virus drops are transmitted from infected people to solid surfaces in the property, into the air and (heating, ventilation and air conditioning), causing damage and alteration to the property and the air safe and breathable to unsafe and dangerous, which can survive on the surfaces for a longer period of time, ”says the verdict.
The court also agreed with plaintiffs that they had sufficiently alleged that the direct bodily harm triggered the civil law coverage of the policy.
Plaintiff's attorney Robin Cohen, chairman of Cohen Paragraph Frenchman & McKenna in New York, said the ruling would “be influential in Illinois and it could lead to analysis in New York, as the judge went to both Illinois and New Yorkers Right stated that the virus could cause loss or damage as claimed. ”She added that these allegations are“ science based ”.
CNA did not respond to a request for comment.