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Insurance

Sep. 11, 2020

Restaurant can’t take business interruption insurance suit back to state court

Since insurance companies and policyholders are often located in different states, insurers have been able to remove actions to federal court by successfully arguing a diversity of jurisdictions exist.

A federal judge denied a San Francisco restaurant's motion to remand its COVID-19-related business interruption coverage suit to state court Thursday after finding a state health official was fraudulently joined. It was the second such ruling in California.

Restaurants and retailers across the U.S. have filed at least 1,000 business interruption suits against their insurers since the pandemic hit earlier this year. They say their po...

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