No Direct Physical Loss or Damage

In Wellpath Holdings, Inc. v. XL Insurance America, Inc., No. 54589 2021, 2021 WL 5165653 (N.Y. Sup. Ct. Westchester Cnty. Oct. 4, 2021), Mound Cotton’s clients were awarded a full dismissal with prejudice in a decision that explained that the presence of the COVID-19 virus does not constitute “direct physical loss” or “direct physical damage,” and that also acknowledged that, shortly after MCWG filed legal papers seeking a dismissal, the insured voluntarily withdraw its claim against those of its insurers/defendants that were represented by MCWG (only).  MCWG’s motion to dismiss was premised on a virus exclusion.  The decision was the first of its kind out of Westchester County on this issue.

Partners Wayne Glaubinger and Jared Markowitz represented the following insurers in this case: Certain Underwriters at Lloyd’s, London; General Security Indemnity Company of Arizona; and United Specialty Insurance Company.

The decision can be read here.

Share This