Saxe Doernberger & Vita, P.C. (SDV) files Amicus Brief in Support of Policyholders Nationwide

NEW JERSEY (December 1, 2021) – Many jurisdictions recognize that commercial property insurance
covers direct physical loss or damage to property that has not suffered structural damage. Yet many
insurers have denied coverage for COVID-19 business interruption claims made under commercial property
policies, and courts have too often dismissed the insureds’ claims in litigation, denying them the opportunity
even to submit their proof. In an Amicus Brief filed in the United States Court of Appeals for the Third Circuit,
Saxe Doernberger & Vita, P.C. (SDV) argued that insureds deserve an opportunity to prove their claims
and not be denied coverage without the chance to litigate an insurer’s coverage decision.
SDV is at the forefront of policy interpretation issues and filed the brief as an advocate for policyholders
nationwide. The outcome on appeal in 1 S.A.N.T., Inc. v. National Fire & Marine Insurance Company, 513
F.Supp.3d 623 (W.D.Pa. 2021) and the related consolidated cases could significantly impact rulings in
future business interruption cases for commercial property owners, homeowners, and retail businesses.
Prior to recent COVID-19-related decisions, case law construing the phrase “direct physical loss or damage”
was consistent with the broad goals of all-risk property coverage, which was designed to cover fortuitous
property loss but not inherent vice or legal loss such as foreclosure. Recent COVID-19 decisions requiring
structural loss or physical alteration to covered property threaten to upset coverage law that had been
otherwise settled for over a generation. SDV filed its Amicus Brief in the Third Circuit to oppose this threat.
SDV represents clients in multiple industries, including real estate, hospitality, insurance broker support,
construction, and franchised businesses. SDV also works closely with risk managers, CFOs, in-house
counsel, and other corporate leaders to resolve insurance conflicts quickly and effectively. SDV is dedicated
to advocating on behalf of policyholders to ensure their interests are represented – and protected – in
connection with the Third Circuit’s ruling. In addition, SDV aims to hold insurers accountable and ensure
the court’s decision is consistent with case law precedent.