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COVID-19 Closures

The following summaries are of recent published decisions of the California appellate courts, the Ninth Circuit, and the United States Supreme Court. The summaries are presented without regard to whether Severson & Werson represented a party in the case.

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VFLA EventCo, LLC v. William Morris Endeavor Entertainment, LLC (2024) 100 Cal. App. 5th 287

Through defendant talent agency, plaintiff hired several performers for a rock concert to be held in April 2020.  Under the contract, plaintiff made a $6 million deposit that was non-refundable.  However, the contract had a force majeure clause which defined force majeure broadly enough to include cancellation of the concert due to COVID restrictions.  However, the clause further provided that… Read More

Coast Rest. Grp. v. Amguard Ins. Co., No. G061040, 2023 Cal. App. LEXIS 269 (Ct. App. Apr. 10, 2023)

This decision holds that a restaurant established that its business losses incurred due to government closure orders during the COVID-19 pandemic were within the basic coverage of its business interruption coverage but also fell within the virus exclusion and the exclusion for loss caused directly or indirectly by enforcement of an ordinance or law.  Hence, judgment for the insurer is… Read More

SVAP III Poway Crossings, LLC v. Fitness Internat., LLC, 87 Cal. App. 5th 882 (2023)

Fitness leased a building from SVAP.  The lease was for a period of 15 years with 3 five-year renewals at the tenant's option.  In the 20th year of the lease, COVID hit, and the tenant was forced by government orders to shutter its gym facility for several months.  This decision holds that despite the financial hardship the tenant suffered, it… Read More