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| re: Jujamcyn sues over paltry Covid payout | |
| Last Edit: JereNYC 04:03 pm EDT 08/26/20 | |
| Posted by: JereNYC (JereNYC@aol.com) 03:58 pm EDT 08/26/20 | |
| In reply to: re: Jujamcyn sues over paltry Covid payout - paymon 03:37 pm EDT 08/26/20 | |
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| The insurance company is really walking a bullshit line here by saying that, although the theatres were closed by order of the Governor, that access to them is not actually prohibited, evidenced by the fact that Jujamcyn has been able to check in that the buildings are okay. They are saying that, because security can access the buildings, somehow that means that Jujamcyn could be using them for business purposes, but is not. The precedent being cited here is when the Roundabout sued their insurance company over the incident with the collapsed construction crane in Times Square in 1998 that blocked access to Henry Miller's Theatre, where the revival of CABARET had been running. In that case, because Henry Miller's itself was not damaged, the insurance company wasn't going to pay out because a clause in the Roundabout's policy said that damage to the building itself had to have occurred. So, although the theatres are closed by order of the Governor, the insurance company must think that Jujamcyn should have defied the order and opened their theatres anyway. I assume that, had Jujamcyn done so, there would have been arrests due to defying the close order. It's pretty insane. |
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| re: Jujamcyn sues over paltry Covid payout | |
| Posted by: ryhog 06:36 pm EDT 08/26/20 | |
| In reply to: re: Jujamcyn sues over paltry Covid payout - JereNYC 03:58 pm EDT 08/26/20 | |
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| At this very early stage, it is normal to plead the kitchen sink. I realize that these clickbait articles want you to read the complaint and answer as more than they are, but they will both be amended, in both directions. I would not expect a lot of movement in policies in the future. If you are big enough, you can buy any coverage you want, if you are willing to pay for it. No one was thinking of this when they negotiated policies, because it is not what they were worried about. And they won't be again because people hate paying premiums they can avoid, and the price of pandemic coverage will go up of course. Ironically, a lot of business interruption insurance lawsuits right now are the inverse of this: the policies exclude shutdowns by governmental authority. If I had to guess, I would say the Shuberts are probably self-insured, with some blanket reinsurance to cover major catastrophes, quite probably not including this. The day of reckoning is not whether these and other rich landlords get a few bucks; it is how the insurance companies get through this. I am a lot more worried about the small businesses in the theatre district than I am about the big landlords. When we come out of the other end of this, they will still own their real estate. |
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| re: Jujamcyn sues over paltry Covid payout | |
| Posted by: paymon 04:36 pm EDT 08/26/20 | |
| In reply to: re: Jujamcyn sues over paltry Covid payout - JereNYC 03:58 pm EDT 08/26/20 | |
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| The civil authority argument does seem weak. But, regarding the other argument, it makes sense that Jujamcyn’s claim does not satisfy the requirement for physical damage. | |
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| re: Jujamcyn sues over paltry Covid payout | |
| Last Edit: JereNYC 04:58 pm EDT 08/26/20 | |
| Posted by: JereNYC (JereNYC@aol.com) 04:53 pm EDT 08/26/20 | |
| In reply to: re: Jujamcyn sues over paltry Covid payout - paymon 04:36 pm EDT 08/26/20 | |
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| My guess is that that the pandemic will lead to much more specific language in insurance policies that will specifically mention either ordered closure by the city, state, or Federal government for any reason or closure as the result of a pandemic or both. The insurance company wants to follow the letter of the agreement, while Jujamcyn is arguing the spirit of the agreement. Given that the scope of the pandemic is pretty unprecedented, I could see a judge siding with Jujamcyn in this case. They purchased business interruption insurance and, through no fault of their own, and, in fact, by order of the governor, their business was interrupted. But, if they lose, I'm sure they're be fine. If there's ever an advantage to being the scion of billionaires, it would be now. Not that there's ever NOT advantage in being the scion of billionaires. |
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