On March 2, 2023, the District of Columbia Court of Appeals affirmed the grant of summary judgment to Erie Insurance Exchange in Rose's 1, LLC, et al. v. Erie Ins. Exch., a COVID-19 business interruption claim filed by several restaurants and food service businesses in the District of Columbia. In doing so, the court "join[ed] the majority of other courts in determining that 'direct physical loss of or damage to property' requires some sort of tangible, material alteration, which does not include 'loss of use.'" Opinion at 26.
The restaurants and other businesses argued that the loss of use of their businesses due to the pandemic and governmental shutdown orders entitled them to coverage under their policy's "direct physical loss of or damage" provision...
