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United States District Court for the Southern District of California
September 11, 2020, Decided; September 11, 2020, Filed
Case No.: 20-CV-907-CAB-BLM
[*939] ORDER ON MOTION TO DISMISS
[Doc. No. 16]
This insurance coverage matter is before the Court on Defendants' motion to dismiss. The motion has been fully briefed, and the Court deems it suitable for submission without oral argument. For the following reasons, the motion is granted.
Plaintiffs Pappy's Barber Shops, Inc., and Pappy's Barber Shop Poway, Inc., each operate a business in the San Diego area. The complaint makes no distinction between the plaintiffs, referring to them jointly as "Pappy's Barber Shop." The complaint does not expressly allege what type of business [**2] each Plaintiff operates, but based on the names of the entities, presumably the businesses are each a barber shop or salon.
The complaint names three defendants—Farmers Group, Inc., Farmers Insurance Company, Inc., and Truck Insurance Exchange—but makes no distinction among the three entities, referring to them throughout as "Farmers." According to the complaint, "Farmers" issued Pappy's Barber Shop an insurance policy with a policy period of February 1, 2020 through February 1, 2021 (the "Policy"). [Id. at ¶ 17.] The Policy itself is not attached to the complaint, but Defendants attach a copy of the Policy to their motion to dismiss and ask the Court to take judicial notice of the Policy. Plaintiffs did not oppose the request for judicial notice, and because judicial notice of the Policy is appropriate, [*940] 1 the request for judicial notice is granted. According to the Policy itself, Truck Insurance Exchange is the insurer, and Plaintiffs do not dispute this fact in their opposition to the instant motion. [Doc. No. 16-2 at 9; Doc. No. 18 at 20.]
On March 16, 2020, in connection with the COVID-19 pandemic, San Diego Mayor Kevin Falconer "issued Executive Order No. 2020-1, prohibiting any gathering of 50 or more people [**3] and discouraging all non-essential gatherings of any size." [Doc. No. 1 at ¶ 25.] Three days later, California governor Gavin Newsom "issued Executive Order N-33-20, requiring 'all individuals living in the State of California to stay home or at their place of residence except as needed' for essential service and engage in strict social distancing." [Doc. No. 1 at ¶ 26.] As a result of these orders, both Plaintiffs, along with "[a]ll California businesses not deemed essential, . . . were ordered to close their doors." [Id. at ¶ 27.] In addition, 49 state governments have issued orders limiting or prohibiting the operation of non-essential businesses as a result of the COVID-19 pandemic. [Id. at ¶ 30.] The complaint refers to these government orders collectively as the "COVID-19 Civil Authority Orders." [Id. at ¶ 2.]
Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.
487 F. Supp. 3d 937 *; 2020 U.S. Dist. LEXIS 166808 **; 2020 WL 5500221
PAPPY'S BARBER SHOPS, INC. et al., Plaintiffs, v. FARMERS GROUP, INC. et al., Defendants.
Subsequent History: Dismissed by, Motion denied by Pappy's Barber Shops, Inc. v. Farmers Grp., Inc., 2020 U.S. Dist. LEXIS 182406 (S.D. Cal., Oct. 1, 2020)
coverage, physical loss, civil authority, orders, property damage, business income, insured, extra expense, motion to dismiss, premises, allegations, described premises, complaint alleges, provide coverage, quotation, marks, place of business, insurance policy, judicial notice, barber shop, provisions, amend
Civil Procedure, Defenses, Demurrers & Objections, Motions to Dismiss, Failure to State Claim, Pleadings, Complaints, Requirements for Complaint, Insurance Law, Claim, Contract & Practice Issues, Policy Interpretation, Question of Law, Ordinary & Usual Meanings, Reasonable Expectations, Reasonable Person, Technical Constructions & Meanings, Evidence, Burdens of Proof, Allocation, Procedure, Evidence & Trial, Burdens of Proof, Commercial General Liability Insurance, Exclusions, Claims Made Policies, Exclusions, Parol Evidence, Customs & Trade Usage, Property Insurance, Coverage, Property Damage