Happy Valley Road LLC v. Amguard Insurance Company
Opinion
Trial Court Opinion
UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA San Francisco Division HAPPY VALLEY ROAD LLC, Case No. 3:22-cv-06115-LB
Plaintiff, ORDER DISMISSING CASE v. Re: ECF No.
AMGUARD INSURANCE COMPANY, Defendant. 16 INTRODUCTION The plaintiff, Happy Valley Road LLC, owns and rents high-end residential real estate in Orinda, California, primarily through short-term leases. The COVID-19 pandemic disrupted the short-term-rental market, resulting in lost rental income. The plaintiff submitted a claim for lost rental income for one property to its insurer, Amguard Insurance Company, alleging that the COVID-19 virus was a covered “direct physical loss.” Amguard denied the claim. The plaintiff then sued to recover its lost rental income. The court dismissed an earlier complaint claiming breach of contract and breach of the implied covenant of good faith and fair dealing because (1) a policy that covers “direct…