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Business Interruption Insurance and the 'Cessation or Suspension' Rule
Commercial entities placing first-party insurance often seek to insure physical loss or damage to their property and the loss of earnings directly arising from that loss or damage. Insurance against such loss of earnings is typically addressed through a 'Business Interruption' provision that is intended, as some courts have said, ”to do for the business what the business would have done for itself had no loss occurred” to the insured's property. Protection Mutual Ins. Co. v. Mitsubishi Silicon Am. Corp., 992 P.2d 479, 481 (Or. Ct. App. 1999) (quoting A&S Corp. v. Centennial Ins. Corp., 242 F. Supp. 584, 589 (N.D. Ill. 1965). While insurance policy wording can vary, see Protection Mutual, 992 P.2d at 481, broker manuscript and insurer forms require that an insured peril cause physical loss or damage to insured property, creating a 'necessary interruption' or 'necessary suspension' of the business. Some claimants and commentators argue that this insurance applies to any downturn or slowdown in business following loss or damage, but it is well-settled in case law that there must be a complete cessation or suspension in order to qualify for business interruption coverage.
The Settled Rule
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs
A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.
Coverage Issues Stemming from Dry Cleaner Contamination Suits
In recent years, there has been a growing number of dry cleaners claiming to be "organic," "green," or "eco-friendly." While that may be true with respect to some, many dry cleaners continue to use a cleaning method involving the use of a solvent called perchloroethylene, commonly known as perc. And, there seems to be an increasing number of lawsuits stemming from environmental problems associated with historic dry cleaning operations utilizing this chemical.