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Madison Square Garden Loses Appeal of Covid-19 Insurance Claim Dismissal

February 23, 2023

A New York appeals court last week upheld the dismissal of Madison Square Garden’s Covid-19 business interruption claim against Factory Mutual Insurance Co.

The court agreed with a New York County court’s dismissal in January, 2002 after it found that MSG failed to show it suffered physical damage or loss due to the pandemic.

“[A]lleging loss based on COVID-19-related closures is insufficient to state a cause of action for breach of contract and insufficient to warrant coverage under plaintiffs’ policies with defendant insurance companies,” the appellate court wrote, citing its own April, 2022 ruling denying a similar appeal by Consolidated Restaurant Operations Inc. of a dismissal of its Covid-19 suit against Westport Insurance Corp. That was the first ruling by a New York appeals court on Covid-19 business loss claims.

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