CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - SUNDAY, MAY 11, 2025

Motion to Dismiss COVID-19 Claim Denied

May 15, 2023
Tred R. Eyerly - Insurance Law Hawaii

Finding that a contamiation exclusion was ambiguous, the Court denied the insurer's Motion to Dismiss the insured's COVID-19 claim. C.J. Segerstrom and Sons v. Lexington Ins. Co., 2023 U.S. Dist. LEXIS 33293 (C.D. Cal. Feb. 27, 2023).

Segerstrom owned and operated a shopping mall. It was forced to close the mall due to the outbreack of COVID-19 in order to comply with related closure and stay-at-home orders issued by state and county governmental authorities. The mall was unable to open for several months, resulting in losses over $3,000,000.

Mr. Eyerly may be contacted at te@hawaiilawyer.com


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