JUST NOW: Philadelphia Eagles Demand Reconsideration of Major COVID Insurance Lawsuit

The Philadelphia Eagles are attempting to revive their lawsuit against Factory Mutual Insurance Co. (FM Global) concerning COVID-19-related business interruption coverage. In October, a U.S. district court dismissed the case, citing Pennsylvania Supreme Court decisions, particularly the “Ungarean v CNA” case, which ruled that physical damage is required to trigger business interruption coverage.

The Eagles’ legal team argues that, unlike CNA’s policy—which requires physical alterations like “repair,” “replacement,” or “rebuilding”—FM Global’s policy does not have such stipulations. They contend that FM Global’s policy does not mandate physical repairs or replacements for coverage to apply.

The team also referenced a ruling by the Third Circuit Court of Appeals, which determined that coverage could be applicable if a business’s operations were rendered unviable due to a harmful substance, even if it wasn’t physically visible. While FM Global could challenge the presence of COVID-19 in the stadium or its threat level, the Eagles argue these issues should be explored through discovery and expert testimony.

Additionally, the Eagles pointed out that FM Global has previously acknowledged that communicable diseases could cause “physical loss” and “physical damage.” In a 2019 court filing, FM Global even recognized that the presence of mold, a disease-causing substance, could lead to physical loss and render property unfit for use.

FM Global declined to comment on the Eagles’ motion, and attempts to reach the Eagles’ legal team for comment were unsuccessful.