Robert W. Fountain, Inc. v. Citizens Insurance Company of America

I. BACKGROUND

2 Fountain alleges that the San Francisco and California statewide “shelter in place” 3 and “stay at home” orders of March 2020 “were issued for public health reasons as a result 4 of a pandemic of a disease called coronavirus 2019, or COVID-19.” Compl. ¶ 9. It adds 5 that “Plaintiffs did not suffer from this virus nor was there evidence that it existed or even 6 threatened their business establishment.” Id. Fountain contends that “Because of these 7 governmental orders, Plaintiffs were physically unable to utilize their business premises 8 and thus lost the physical use thereof.” Id. ¶ 10. Fountain made a claim to Citizens for 9 business interruption coverage under two successive and identical Citizens insurance 10 policies: Businessowners insurance policy number OBF-9926622, with effective dates of 11 05/01/2019 to 05/01/2020, and 05/01/2020 to 05/01/2121. Id. ¶¶ 6, 11; Austin Decl. (dkt. 12 13-1) Ex. 1. Citizens denied the claim. Compl. ¶ 12. 13 The policies state that Citizens “will pay for direct physical loss of or damage to 14 Covered Property at the premises described in the Declarations caused by or resulting from 15 any Covered Cause of Loss.” …