Q Clothier New Orleans LLC v. Twin City Fire Ins. Co.

Q Clothier New Orleans LLC v. Twin City Fire Ins. Co.

Opinion

 [*577]  ORDER AND REASONS

Before the Court are defendant Twin City Fire Insurance Company's motion for judgment on the pleadings (Rec. Doc. 27), plaintiffs' opposition (Rec. Doc. 35), and defendant's reply (Rec. Doc. 40). For the reasons discussed below,

IT IS ORDERED that the motion (Rec. Doc. 27) is GRANTED.

PROCEDURAL HISTORY AND FACTS OF THE CASE

The instant matter arises from an insurance [**2]  dispute over coverage for losses allegedly sustained during the statewide COVID-19 lockdown. Rec. Doc. 1. Plaintiffs Q Clothier New Orleans, LLC; Q Shirtmakers West Village, LLC; Q Custom Clothier Houston, LLC; Q Custom Clothier OKC, LLC; Q Custom Clothier ATL, LLC; Q Clothier Tulsa, LLC; Q Clothier Ft. Worth, LLC; Q Fifty One Digital, LLC; and Q Fifty One, LLC (collectively "Q Clothier") are a collective of limited liability companies that own and manage custom men's clothing stores located in Louisiana, Texas, Georgia, Oklahoma, and Arkansas. Rec. Doc. 35 at 1. Plaintiffs purchased a business owner's policy from defendant Twin City Fire Insurance Company ("Twin City") to cover their multiple locations, which provided property; business personal property; business income and extra expense; stretch coverages; limited fungi, bacteria, or virus coverage; and additional coverage between the period of June 19, 2019 to June 19, 2020. Rec. Doc. 1 at 3.

In March 2020, Louisiana Governor John Bel Edwards and New Orleans Mayor Latoya Cantrell issued a mandatory lockdown of non-essential businesses in response to the COVID-19 global pandemic, including plaintiffs' New Orleans location. Rec. Doc. [**3]  1 at 5. Q Clothier submitted a claim to Twin City for losses allegedly incurred by the mandatory closure of non-essential businesses in response to the COVID-19 global pandemic. Rec. Doc. 27-1 at 5. On March 27, 2020, Twin City denied the claim, stating "even if the virus did cause damage, it is excluded from the policy, and the limited coverage available for losses caused by virus does not apply to the facts of your loss." Id.; Rec. Doc. 1 at 7.

On May 18, 2020, Q Clothier filed the instant complaint in this Court based on complete diversity and an amount in controversy exceeding $75,000 pursuant to 28 U.S.C. § 1332.¹ Rec. Doc. 1 at 2. Q Clothier asserts that it is entitled to coverage under the Business Owner's Policy No. 59 SBA IW5221 SC ("the Policy") for losses from business interruption, extra expenses, action of civil authority, limitations on ingress and egress, and expenses to reduce loss. Id. at 4; Rec. Doc. 35 at 1-2. The  [*578]  Policy provides that Twin City "will pay for direct physical loss of or physical damage to Covered Property. . .caused by or resulting from a Covered Cause of Loss." Rec. Doc. 27-2 at 45. The policy thereafter defines "Covered Cause of Loss" as "risks of direct physical loss," unless [**4]  the loss is otherwise excluded or limited by the Policy. Id. at 46.

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