Southern Orthopaedic Specialists lose appeal against State Farm Fire & Casualty Company over COVID-19 business interruption losses.

The medical practice filed a lawsuit against its insurance provider after its physical operations were suspended in 2020 due to COVID-19 lockdown measures in Louisiana. However, the policy's Civil Authority provision only applies to loss of income "caused by action of civil authority that prohibits access to the described premises" when "a Covered Cause of Loss causes damage to property other than property at the described premises." As a result, the district court dismissed Southern Orthopaedic's claims for business interruption losses and negligent misrepresentation. The Fifth Circuit affirmed the decision of the district court, leaving the medical practice with no legal recourse to claim for its losses. Read more >>> Microsoft Word - 22-30340-CV0.docx (