Robert L. Byer

Julie S. Greenberg

Damon N. Vocke

Berkshire Hathaway and one of its units on Monday urged a Pennsylvania federal court to toss a restaurant's suit seeking insurance coverage for losses caused by the COVID-19 pandemic, arguing that a virus exclusion "plainly applies" to the restaurant's claims.

1 S.A.N.T. Inc., doing business as the Town & Country Bar and Grill in New Castle, hit Berkshire Hathaway and National Fire & Marine Insurance Co. with the proposed class action last month. [...]

But National Fire argued that it had properly denied Town & Country's claim because the restaurant didn't sustain "direct physical loss of or damage to covered property" necessary to trigger coverage under the policy. The alleged loss or damage is also excluded under the policy because it stems from a virus, and the closure orders issued by state and local governments didn't prohibit access to the property, a requirement for civil authority coverage, the insurer said.

"The decision of this court will be important and widely reported," National Fire added. "This could be the first decision on enforcement of the virus exclusion for COVID-19 in federal court."

In a separate motion to dismiss, Berkshire Hathaway said there's nothing in Town & Country's complaint that establishes personal jurisdiction over the Omaha, Nebraska-based company in Pennsylvania. And the restaurant hasn't stated a claim against Berkshire Hathaway upon which the court can grant relief, the company said.

"The complaint contains nothing indicating why Berkshire Hathaway is a defendant other than its subsidiary, National Fire, having issued the insurance policy to plaintiff," the company said.

Hundreds of businesses around the country have asserted that their insurance policies cover losses from the pandemic, but many insurers are pointing to the virus exclusions as a reason for denial. [...]

National Fire said Monday that the restaurant's take is "futile on its face." [...]

Berkshire Hathaway and National Fire are represented by Robert L. Byer, Julie S. Greenberg and Damon N. Vocke of Duane Morris LLP.

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