No Physical Loss or Damage
Madison Square Garden Sports Corp. et al. v. Factory Mutual Insurance Co. et al., case number 2022-02068 (New York Supreme Court Appellate Division, First Department)
Madison Square Garden and related entities appealed a lower court ruling in favor of Mound Cotton’s client in a matter involving a claim seeking recovery for income losses associated with the COVID-19 pandemic. The lower court had ruled for Mound Cotton’s client, holding that a mere “loss of use” of property did not meet the property insurance policy’s “physical loss or damage” requirement.
On appeal, the New York Appellate Division, First Department, similarly sided with Mound Cotton’s client and affirmed the lower court, holding that the decision below was consistent with existing precedent.