No Matter How Many Times they Try Courts Find Direct Physical Loss is Required

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Caribe Restaurant & Nightclub, Inc. ("Caribe") initiated a class action against Defendant Topa Insurance Company ("Topa") alleging breach of contract and seeking declaratory judgment for insurance coverage. The USDC ruled in Caribe v. Topa Insurance Company, Case No. 2:20-cv-03570-ODW (MRWx), United States District Court Central District of California (April 9, 2021) as have almost every court in the country.

ZALMA OPINION

Insurance is nothing more than a contract whose terms and conditions must be enforced as written if they are unambiguous. Losing money is a real loss. When the plaintiff loses money due to an act that did not do any direct physical loss or damage, no promise made by the policy to provide indemnity to the insured was implicated. The damage done to Caribe and those similarly situated was done by the state of California. Perhaps some creative lawyer will find a way to sue the state for its wrongful and allegedly unconstitutional orders depriving Caribe of the right to do business.