Insights

Washington – August 15, 2024: The 2025 edition of The Best Lawyers in America® has recognized 42 Crowell & Moring lawyers as "Best Lawyers" and 29 lawyers as “Ones to Watch.”

Washington – August 17, 2023: The 2024 edition of The Best Lawyers in America® has recognized 47 firm lawyers as "Best Lawyers" and 41 lawyers as “Ones to Watch.”

On March 2, 2023, the District of Columbia Court of Appeals affirmed the grant of summary judgment to Erie Insurance Exchange in Rose’s 1, LLC, et al. v. Erie Ins. Exch., a COVID-19 business interruption claim filed by several restaurants and food service businesses in the District of Columbia. In doing so, the court “join[ed] the majority of other courts in determining that ‘direct physical loss of or damage to property’ requires some sort of tangible, material alteration, which does not include ‘loss of use.’” Opinion at 26.

On February 8, 2023, Florida’s intermediate appellate court quashed a trial court order that had erroneously compelled discovery of work product materials from an insurer’s claim file in a breach of contract action concerning property damage to its insureds’ home. Family Security Ins. Co. v. Stein, et. al., No. 4D22-1468 (Fla. 4th DCA Feb. 8, 2023). After the insurer asserted work product protection for certain claim file materials sought in discovery, the trial court granted the insureds’ motion to compel and ordered the insurer to produce its field adjuster loss report, nonfinal estimate, and supporting documentation. Florida’s District Court of Appeal then stepped in, granting the insurer’s petition for a writ of certiorari and quashing the trial court order.

Today, in Wilson, et al. v. USI Insurance Service LLC, et al., the U.S. Court of Appeals for the Third Circuit affirmed district court orders ruling in favor of insurers in COVID-19 business interruption claims, becoming the latest federal circuit court to conclude that there is no coverage for such claims. Specifically, applying the law of Pennsylvania and New Jersey, the court held that “the loss of use of a property’s intended business purpose is not a physical loss of property covered by the businesses’ insurance policies.” Opinion at 22. With this ruling, the federal circuit courts for the First, Second, Third, Fourth, Fifth, Sixth, Seventh, Eighth, Ninth, Tenth and Eleventh Circuits now have all determined that there is no coverage for COVID-19 business interruption claims.

With stronger rules requiring disclosure of cyber risk and cyber breaches, 2023 has seen heightened SEC enforcement of companies’ obligations in cyber breaches and, notably, enforcement charges brought directly against Chief Information Security Officers (CISOs).