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PSG-Mid Cities Medical Center, LLC v. Jarrell

Court: ND Tx  05/11/2021  All Claims Dismissed for COVID-19 Losses Under Commerical Property Policy

A court of the Northern District of Texas granted a commercial property insurer's motion to dismiss all of an insured hospital's claims for losses arising out of governmental stay-at home orders to limit the spread of COVID-19, which prevented hospital from performing elective surgeries, finding no allegations of direct physical loss or damage to the insured's property, and, thus, the insured failed to state a breach of contract claim. The court also dismissed all the insured's extracontractual claims.

commercial property insurance policy, COVID-19, direct physical loss, government shutdowns, business interruption, civil authority orders, damage to property, motion to dismiss, FRCP 12(b)(6)

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