Bloomberg Law
June 22, 2020, 9:30 AM UTC

Pick Your Court: Venue Fights Emerge in Virus Coverage Suits

Jacob Rund
Jacob Rund
Reporter

Policy holders and insurance companies are increasingly sparring over whether business interruption coverage lawsuits brought on by the coronavirus pandemic should take place in federal versus state courts.

Much of the jockeying for preferred venues boils down to long-held expectations of how different judges will view coverage disputes, litigation watchers say.

“A lot of insurers feel they’ll get a fairer shake in federal court,” said Daniel Schwarcz, a professor at the University of Minnesota Law School. Federal judges aren’t elected, and “are perceived as being more removed from any politics” that could influence a decision, he said.

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