The California Sixth District Court of Appeal found that the San Jose Sharks and other members of the National Hockey League’s claims for hundreds of millions of dollars of business interruption insurance due to the shutdown of hockey operations during the COVID-19 pandemic were properly dismissed by the trial court. The Sixth District relied on the insurance policy’s “contamination exclusion” to find in favor of Firm client Factory Mutual Insurance Company.
Separately, the Connecticut Court of Appeal found that $76 million of business losses due to the closure of Foxwood Resorts Casino during the COVID-19 pandemic are not covered by Factory Mutual. The Court of Appeal held that the presence of COVID-19 did not cause physical loss or damage within the meaning of the insurance policy and even if it did, the “contamination exclusion” would preclude insurance coverage.
The cases are San Jose Sharks, LLC v. Superior Court, and Mashantucket Pequot Tribal Nation v. Factory Mutual Insurance Co.
The Simpson Thacher team representing Factory Mutual in these matters included Bryce Friedman, Chet Kronenberg, Matthew Penny, Brandon Kenney, Lindsay DiMaggio, Matthew Munro and Sarah Forbes.