Riverside Superior Judge Carol Greene correctly threw out a Riverside company’s suit for insurance money, the Court of Appeal ruled Oct. 11.
Riverside bus and van manufacturer Grech Motors filed suit against their insurer, Travelers Property Casualty Co. of America, seeking insurance for COVID-19 related losses. Grech’s factory in Mexicali had temporarily shut down due to Mexico’s pandemic policies, and their showroom closed in Riverside, causing the company immediate loss.
Travelers had denied Grech’s claim because their insurance policy covered “physical loss,” which California law defines as damage to property, not loss of revenue.
The Court of Appeal and Greene both agreed with Travelers.
“I think my hands are tied based on the state of the California law at this time,” Greene said, according to the appellate ruling.
Michael Bidart, Ricardo Echeverria and Kristin Hobbs of Shernoff Bidart Echeverria and Jeffrey Ehrlich and Reid Ehrlich-Quinn of The Ehrlich Law Firm represented Grech.
Gregory Varga of Robinson & Cole, and Randy McElvain and Edmond Sung of Weston & McElvain represented Travelers.
Riverside Superior Court case number RIC2002552.
Appellate case number E077303.
Fourth District Court of Appeal, Division Two, Acting Presiding Justice Douglas Miller wrote the opinion, which Associate Justices Richard Fields and Frank Menetrez joined.
Read the opinion here.
