New York's Governor is not National or International Body

Published: Dec. 8, 2022, 8:27 p.m.

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Chubb Must Pay for Cancellation of Tina Turner Concert Because of Order  of State of New York  

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Tina Turner Musical LLC v. Chubb Insurance Company of Europe SE, Appeal  No. 16804, Index No. 651607/21, Case No. 2022-02269, Supreme Court of  New York, First Department (December 6, 2022)  In an appeal from an order of the Supreme Court, New York County (Andrew  Borrok, J.), entered on or about December 30, 2021, that denied  defendant\'s motion to dismiss the complaint, the New York Appellate  Court unanimously affirmed the decision of the trial court.  

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New York appellate courts are noted for the brevity of their opinions,  and this one is no exception.  The appellate court concluded that the trial court, the Supreme Court,  New York County, correctly concluded that plaintiff\'s losses resulting  from the cancellation of its Broadway show during the COVID-19 pandemic  did not fall within the communicable disease exclusion in the insurance  policy.  The exclusion precluded from coverage:  any loss directly or indirectly arising out of, contributed to by, or  resulting from... any communicable disease or threat or fear of  communicable disease... which leads to: [1] the imposition of quarantine  or restriction in movement of people or animals by any national or  international body or agency; [2] any travel advisory or warning being  issued by a national or international body or agency.  The appellate court noted that the exclusion did not clearly and  unmistakably preclude from coverage losses caused by communicable  diseases that were of such a systemic nature as to lead to quarantine or  travel advisory orders by a national or international body or agency.  Rather, giving the exclusion a strict and narrow construction, and  resolving any ambiguities against defendant, the appellate court found  that it precluded from coverage losses resulting from quarantine or  travel advisory orders issued by a national or international body or  agency in response to a communicable disease.

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