Thor Equities, LLC v. Factory Mut. Ins. Co.

Thor Equities, LLC v. Factory Mut. Ins. Co.

Opinion

 [*804]  MEMORANDUM AND ORDER

ANALISA TORRES, District Judge:

This is an action for anticipatory breach of contract with respect to a commercial property insurance policy issued by Defendant, Factory Mutual Insurance Company ("FM"), to Plaintiff, Thor Equities, LLC ("Thor"). Thor seeks damages and a judgment declaring that FM is required to pay Thor for losses arising from the COVID-19 pandemic. Compl., ECF No. 1. The parties cross-move for partial judgment on the pleadings pursuant to Federal Rule of Civil Procedure 12(c),  [*805]  seeking a ruling on whether two exclusions in the insurance policy bar coverage of Thor's losses. ECF Nos. 32, 38; Pl. Mem. at 2-3, ECF No. 34; Def Mem. at 2-3, ECF No. [**2]  44. For the reasons stated below, the motions are DENIED.

BACKGROUND¹

Thor, a commercial landlord, rents properties across the country to hundreds of tenants, for use in a variety of businesses, including office space, retail stores, restaurants, and bars. Compl. ¶ 13. On March 13, 2020, Thor purchased from FM an insurance policy that provides up to $750 million in coverage for property damage and business interruption losses (the "Policy"). Policy, ECF No. 1-1; Compl. ¶¶ 3, 20, 24, 65. Coverage began on March 15, 2020. Policy at 2-3; Compl. ¶¶ 20-21.

Days later, state governments across the country adopted stay-at-home orders in response to the COVID-19 pandemic. Compl. ¶¶ 15-17. As a result, many of Thor's tenants had to close shop and, unable to generate revenue, have requested abatements or other accommodations. Id. ¶ 18. Thor alleges that it has suffered significant business interruption as a result of the pandemic. Id.

Additionally, Thor alleges that confirmed cases of COVID-19 at multiple properties have required it to take action to secure and preserve those locations. Id. ¶ 19. When Thor commenced this action, it estimated that it had already lost more than $20 million in rental income alone. [**3]  Id.

Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.