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Torgerson Properties, Inc. v. Continental Casualty Company
Citation: Not availableDocket: 21-1663
Court: Court of Appeals for the Eighth Circuit; June 28, 2022; Federal Appellate Court
Original Court Document: View Document
Torgerson Properties, Inc. (TPI) appealed a district court's dismissal of its breach of contract claim against Continental Casualty Co. regarding an all-risk property insurance policy. The policy included Business Interruption and Civil Authority/Ingress-Egress provisions, which require a direct physical loss or damage to property for coverage to apply. Following state and local shutdown orders due to COVID-19, TPI claimed lost business income, alleging that the virus was present on its premises. Continental denied the claim, leading to TPI's lawsuit. The Eighth Circuit reviewed the dismissal de novo and determined that under Minnesota law, the insurance provisions did not cover TPI's losses because government orders that restrict property use do not constitute direct physical loss. TPI's assertion that the virus was present did not establish the necessary causal link between the alleged contamination and the business interruption, as TPI did not demonstrate that its operations were curtailed specifically due to contamination rather than the government mandates. The court affirmed the district court’s decision to dismiss TPI’s claim, concluding that the shutdown orders were the primary cause of the business interruption, not any alleged contamination.