Ragged Point Inn v. State National Insurance Company

I. INTRODUCTION

On June 8, 2021, Ragged Point Inn (“Plaintiff”) filed a Complaint in California state court seeking a declaratory judgment that State National Insurance Company (“Defendant”) is required to cover Plaintiff's COVID-19 related losses of income under its insurance policy. Defendant timely removed the case to federal court. After amending the Complaint (“FAC”), Plaintiff moved to remand. Defendant then moved to dismiss. Presently before the Court is Plaintiff's Motion to Remand, and Defendant’s Motion to Dismiss for Failure to State a Claim. For the following reasons, the Court DENIES Plaintiff's Motion and GRANTS Defendant’s Motion. Il. FACTUAL BACKGROUND Plaintiff does business as a hotel, restaurant, gift shop, sandwich stand, coffee bar, mini-mart, and gas station in San Luis Obispo, California. Plaintiff purchased an “all-risk” insurance policy (the “Policy”) from Defendant, effective June 1, 2019 through June 1, 2020. In March 2020, the Governor of California and the Emergency Services Director of San Luis Obispo County ordered all non-essential businesses to close due to the COVID-19 pandemic. Plaintiff alleges that effective March 19,…