In one of the first coronavirus-related court rulings, last week, Michigan Circuit Court Judge, Joyce Draganchuk, ruled in favor of the insurer in a case where the issue was whether or not coverage was owed for restaurants that were closed, or substantially closed, due to COVID-19-related government orders. The case is Gavrilides Management Company v. Michigan Insurance Company.
Gavrilides Management Company owns two central Michigan restaurants, the Soup Spoon Café and The Bistro, and is insured by Michigan Insurance. The insurer filed a motion to dismiss after Gavrilides sued for insurance coverage based on lost revenue during the coronavirus lockdown. The policy in place provided coverage for business interruption.
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