Anthony Guidice Obtains Appellate Win on behalf of Insurance Client

The Superior Court of New Jersey Appellate Division recently affirmed the Trial Court's Order awarding summary judgment for our client, a premier insurance company, in a lawsuit over the denial of a policy claim.

In the lawsuit, Plaintiff alleged that the closure mandated by Governor Murphy's executive orders during the peak of the COVID-19 pandemic resulted in "a substantial loss of business and income". In Mr. Guidice’s argument, the New Jersey Appellate Division agreed that the executive orders barred plaintiff from operating its property but did not physically deprive plaintiff of its possession. Further, Mr. Guidice convinced the court to dismiss the additional claims of plaintiff asserting the virus exclusion and ambiguity of terms within the policy, citing Mac Prop. Grp. LLC v. Selective Fire & Cas. Ins. Co., 473 N.J. Super. 1 (App. Div. 2022); 278 A.3d 272 where policy language was virtually identical.

This resulted in a win for the client, with the New Jersey Appellate Division rejecting all claims, upholding Mac Prop. Grp. LLC v. Selective Fire & Cas. Ins. Co., 473 N.J. Super. 1 (App. Div. 2022); 278 A.3d 272.

Summary Judgement Granted in COVID-19 Coverage Case

(New Jersey) - Senior partner Anthony W Guidice has obtained a Summary Judgment for a corporate insurance carrier facing a property damage lawsuit for high six-figure revenue losses associated with the closure of the plaintiff's hair salon during the pandemic. Plaintiff alleged that COVID-19 caused property loss and physical harm to the premises, that the virus exclusion was inapplicable, and that New Jersey Governor Murphy's Closure Order on March 16, 2020, was the proximate cause of the shutdown.
Guidice argued that to trigger coverage, there must be physical harm or property damage and that it must be a material alteration or "actual" physical damage to the property. Further, even if coverage were to be triggered, the virus exclusion contained in the policy was clear and unambiguous and must be read as written. Finally, Guidice argued that the proximate cause of the shutdown was due to the virus, rather than Governor Murphy's Closure Order.
The Court’s dismissal of the lawsuit was a major victory for our client, as this was the first case faced by this carrier. Hundreds of lawsuits have been filed by policyholders seeking damages for breach of contract and business interruption associated with the pandemic. We anticipate that continued litigation will address the impact of the pandemic on businesses and insurers as this emerging area of the law develops.