On July 31, the seven-member Judicial Panel on Multi-District Litigation (JPML) heard oral argument of extraordinary length on the potential consolidation of all federal cases involving business interruption coverage relating to COVID-19 and/or COVID-19 shutdown orders, totaling approximately 449 such federal cases, roughly 200 of which are putative class actions.
Colleges and universities across the country are beginning to figure out what the fall semester for students will look like. In-house counsel at the schools that have chosen to bring students back to campus full-time need to worry about furthering the spread of the new coronavirus and class action litigation over refunds for tuition, housing and service fees.
It is too early to tell how courts will rule on these kinds of lawsuits, Ed Cramp, a partner at Duane Morris in San Diego said. From his perspective, how education is delivered to a student is not something guaranteed by the university. However, the suits asking for a refund of fees for services not used could be problematic.
“The issue for the institutions is that many of them just don’t have the money. It is not a matter of, ‘Let me just write you a check,’” Cramp said.
As the coronavirus cases start peaking in at least some parts of the United States, the American courts are beginning to experience mounting cases relating to claims against businesses for coronavirus infections and against insurers for alleged business interruption coverage. A few weeks ago, some well-known restaurants in the United States commenced litigation against their insurers over claims for insurance coverage stemming from business interruption. These individual cases will raise a number of issues whether there is direct physical loss to covered property and whether the virus exclusions in the policies bar coverage. As a host of other types of businesses have followed by filing a number of individual suits in several states against their insurers. Last week, however, a new form of litigation has been filed with multiple class action insurance coverage lawsuits being brought by alleged representatives against single insures who are claimed to have written business interruption policies to a number of businesses in given areas or nationwide.