Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
Minor league baseball team the Washington Wild Things has lodged a legal complaint against The Cincinnati Insurance Co., alleging the insurer wrongly failed to cover its claim due to coronavirus closures.
The lawsuit was filed by a group of companies that operate the minor-league team based in Washington, Pa. The plaintiffs say they suffered a “substantial loss of income” in March when the governor of the state implemented restrictions to help stop the spread of the coronavirus.
The complaint points to a series of actions by Gov. Tom Wolf in March that closed all nonessential businesses, including sports arenas.
Subsequently, Pennsylvania counties were organized into reopening plans that opened categories of businesses depending on the level of virus transmission in the area. However, sports arenas and other “entertainment” businesses were forced to remain closed to in-person operations until the final “green” phase.
Indeed, it wasn’t until June 12, 2020, that Washington County, home of the Wild Things, transitioned into the green phase, according to the plaintiffs.
Even in this phase, operations were still curtailed, with events limited to 250 people, including employees. In October, the team was able to expand operations further under amended government restrictions, but only to 20% of their maximum capacity.
The plaintiffs say they expect another round of closures as experts warn of a “second wave” of coronavirus transmission in the fall and winter of 2020.
Due to these closures, the plaintiffs say they have experienced and will continue to experience a substantial loss of business income.
According to the complaint, the minor league baseball team had purchased an “all risk” policy from Cincinnati Insurance. The plaintiffs say they made a claim on the policy, which contained an exclusion for pollutants, but not for viruses. However, they allege, their claim was denied.
“The Policy is an ‘all-risk’ policy, which provides the broadest property insurance coverage available, and provides (among other things) property, business personal property, business income and extra expense, civil authority order, and additional coverages,” the complaint explains.
The lawsuit contends that the insurance company based the denial on the lack of physical damage to the Wild Things’ property. The plaintiffs say that reasoning is wrong and losses they suffered due to COVID-19 restrictions should be covered by their policy with Cincinnati Insurance.
The plaintiffs point to the definition of “loss” in their Cincinnati Insurance policy; they say the term is defined as “accidental physical loss or accidental physical damage,” but “loss” is not further defined in the policy.
The complaint contends, “the use of the disjunctive ‘or’ in the phrase ‘accidental loss or accidental physical damage’ means that coverage is triggered if either a physical loss of property or damage to property occurs.”
“The concepts are separate and distinct and cannot be conflated,” the lawsuit continues.
The lawsuit argues Cincinnati Insurance did conflate the terms when it denied the minor league baseball team’s claim.
The plaintiffs say their business losses are due to Pennsylvania’s mandated shutdown rules. They point out they were required to discontinue use of their property due to coronavirus, leading to the loss of income and profit.
In the alternative, the team argues that because COVID-19 was and is a public health emergency, the virus caused a direct physical loss or damage to the Wild Things’ property.
“Specifically,” the lawsuit says, “the Covered Property has been rendered unusable for its intended purpose because the highly contagious nature of COVID-19, particularly when people gather closely for extended periods of time, precludes any meaningful use of the Covered Property.”
The plaintiffs make one more argument supporting their contention that their losses should be covered by their Cincinnati Insurance policy: They point out that they lost the use of their business property due to government-mandated shutdowns. Their policy, they say, covers losses or damage caused by “action by civil authority.”
The Wild Things are seeking a declaration from the court stating that their losses due to the coronavirus pandemic and related restrictions should be covered by their policy with Cincinnati Insurance. They claim the insurance company is in breach of contract because it denied the team’s claim. They are also seeking damages and attorney fees.
Other minor league baseball teams alleged their claims for business losses were wrongly denied in a lawsuit against Philadelphia Indemnity Insurance Co., Acadia Insurance Co., National Casualty Co., Scottsdale Indemnity Co. and Scottsdale Insurance Co. earlier this year.
Consumers can keep up to date with TCA’s complete guide to coronavirus legal news.
Do you think the minor league baseball team’s losses due to coronavirus shutdowns should be covered by their insurance policy? Tell us your opinion in the comment section below.
The lead plaintiffs are represented by Ryan James of Tucker Arensberg PC.
The Minor League Baseball COVID-19 Insurance Lawsuit is Sports/Facility LLC v. the Cincinnati Insurance Co. et al., Case No. 2:05-mc-02025, in the U.S. District Court for the Western District of Pennsylvania.
Coronavirus Lawsuits & Legal Issues
Since the COVID pandemic shut down the country, Top Class Actions has been keeping you up to date on the latest Coronavirus lawsuits and legal issues.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
