ARTICLE · 01 FEBRUARY 2022

VMSB v. Zurich

Mound Cotton Wollan & Greengrass

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In VMSB v. Zurich, Judge Barry Ostrager granted Zurich's motion to dismiss the complaint, in which the plaintiff, the owner of the Villa Casa Casuarina Hotel and ...

United StatesLitigation, Mediation & Arbitration

Philip Silverberg

Hilary M. Henkind

VMSB , LLC v. Zurich American Ins. Co., No. 650590/2021 (N.Y. Sup. Ct., N.Y. Cnty. Nov. 10, 2021)

In VMSB v. Zurich, Judge Barry Ostrager granted Zurich's motion to dismiss the complaint, in which the plaintiff, the owner of the Villa Casa Casuarina Hotel and Gianni's restaurant in Miami Beach, sought recovery for business income losses arising from the COVID-19 pandemic. Judge Ostrager pointedly stated that it was "well settled that COVID-related business interruption claims do not trigger coverage under policies like the Zurich Policy at issue" and that "the cases so holding are so numerous it is unnecessary to cite them." He concluded that the "imposition of COVID-19 restrictions on a business simply does not constitute direct physical loss or damage to the property."

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