Minor League Teams Strike Out On COVID-19 Loss Coverage

U.S. District Judge Douglas L. Rayes granted a bid to dismiss the case by National Casualty Co., Scottsdale Indemnity Co. and Scottsdale Insurance Co., saying that while the teams, led by Chattanooga Professional Baseball LLC, tried to argue there were other causes for their loss, those causes all stem from the virus.

The policies all contain language saying that the Nationwide units will not cover loss or damage resulting from any virus, the judge said. And while the teams had argued in October that their losses stem from government shutdown orders, Judge Rayes said the virus is ultimately the cause.

“Plaintiffs’ amended complaint does not allege any fact supporting an alternative theory for the issuance of the government orders,” the judge wrote. “There is no allegation in the complaint that absent the pandemic, the government would have been prompted to issue stay-at-home orders or otherwise inhibit access to the ballparks.”

The complaint specifically blames the virus for the government orders, the judge added, saying the teams have not argued that the exclusion is unambiguous.