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Gourmet Deli Ren Cen v. Farm Bureau Gen. Ins. Co.

Gourmet Deli Ren Cen v. Farm Bureau Gen. Ins. Co.

Court of Appeals of Michigan

May 26, 2022, Decided

No. 357386

Opinion

Per Curiam.

Plaintiff Gourmet Deli Ren Cen, Inc. (Gourmet) appeals as of right the order denying its motion for summary disposition and granting summary disposition in favor of defendant Farm Bureau General Insurance Company of Michigan (Farm Bureau). On appeal, Gourmet argues the trial court erred in determining Gourmet was not entitled to business income or civil authority coverage under its insurance policy from the business it lost as a result of COVID-19, or the Governor's executive orders regarding COVID-19. We affirm.

I. BACKGROUND

This case arises from Gourmet's closure in March 2020. Gourmet was a delicatessen and restaurant located in the General Motors Renaissance Center (GMRC), an office complex consisting of seven connected skyscrapers in Downtown Detroit. Gourmet's customer base consisted primarily of others working in the GMRC. Gourmet's insurance policy with Farm Bureau contained, among other things, business income and [*2]  civil authority coverage. Relevant portions of the policy are provided below:

SECTION I

PROPERTY COVERAGES INCLUDING EQUIPMENT BREAKDOWN LOSS OF BUSINESS INCOME

Subject to all the provisions applicable to Section I of this policy, except the Coinsurance Clause and Deductible Clause, this policy is extended to insure against the actual loss of business income sustained and extra expense incurred by you caused by the perils insured against damaging or destroying, during the policy period, building(s) or business personal property (except finished stock manufactured by you) at the premises described in the Declarations.

We will be liable for loss of business income sustained and extra expense incurred for only such length of time as would be required to resume normal business operations, but not exceeding such length of time as would be required to rebuild, repair, or replace, as promptly as possible, such part of the described property as has been damaged or destroyed as a direct result of an insured peril.

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2022 Mich. App. LEXIS 3032 *; 2022 WL 1714202

GOURMET DELI REN CEN, INC., Plaintiff-Appellant, v FARM BUREAU GENERAL INSURANCE COMPANY OF MICHIGAN, Defendant-Appellee.

Notice: THIS IS AN UNPUBLISHED OPINION. IN ACCORDANCE WITH MICHIGAN COURT OF APPEALS RULES, UNPUBLISHED OPINIONS ARE NOT PRECEDENTIALLY BINDING UNDER THE RULES OF STARE DECISIS.

Subsequent History: Leave to appeal denied by Gourmet Deli Ren Cen, Inc. v. Farm Bureau Gen. Ins. Co., 2022 Mich. LEXIS 2139 (Mich., Dec. 7, 2022)

Prior History:  [*1] Wayne Circuit Court. LC No. 2020-008882-CB.

Gourmet Deli Ren Cen v. Farm Bureau, 2021 Mich. App. LEXIS 5433 (Mich. Ct. App., Sept. 13, 2021)

CORE TERMS

coverage, executive order, civil authority, premises, business income, space, summary disposition, physical loss, property damage, insurance policy, restaurants, physical damage, quotation, damaging, replace, repair, marks, business loss, loss of use, trial court, plaintiffs', destroyed, slip opinion, Dictionary, alteration, insure, structural alteration, insured peril, beverage, rebuild