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Chubb Must Pay for Cancellation of Tina Turner Concert Because of Order of State of New York
\\nTina 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.
\\nNew 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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