Mitchell Sandler and McKool Smith recently filed a lawsuit in the Eastern District of Pennsylvania on behalf of minor league baseball teams for business interruption insurance related to their inability to play a minor league season this year. The lawsuit has received broad media coverage, including from the reports below:
"The Minor League Baseball case shares many of the same questions—namely, has the virus caused the kind of direct physical loss or damage that’s covered by insurance policies?...Current evidence suggests that SARS-CoV-2 may remain viable for hours to days on surfaces made from a variety of materials...[I]t is statistically certain that the virus is present at the teams’ ballparks and nearby properties or that the threat of the virus’s presence at the ballparks is imminent,” they wrote. “Moreover, the ballparks are incapable of their intended function—serving as a venue for ball games attended by fans.”
"A slew of Minor League Baseball teams sued their insurance companies in Pennsylvania federal court Tuesday, saying the insurers have wrongfully refused to pay their claims for financial losses caused by the indefinite postponement of their season because of the COVID-19 pandemic."
"A lawsuit by more than a dozen minor league baseball clubs and business entities attached to them have filed a complaint against five insurance companies seeking to recover financial losses as part of the global pandemic."
"A federal lawsuit filed Tuesday by 15 minor league baseball teams against five insurance companies alleges that "action and inaction by federal and state governments" contributed to "catastrophic financial losses" for ballclub."
"Fifteen minor league baseball teams have filed a lawsuit alleging breach of contract by insurance providers after being denied claims for business-interruption insurance due to the coronavirus pandemic."
"Fifteen U.S. minor league baseball teams on Tuesday sued several insurers for not paying out claims for business interruption losses after the cancellation of “much or all” of the league’s season as a result of the coronavirus pandemic, according to a lawsuit."
"The Chattanooga Lookouts, Binghamton Rumble Ponies, Amarillo Sod Poodles, and more than 10 other minor league baseball teams are suing their insurance providers over denied claims for pandemic-related losses."
"Fifteen minor league baseball teams filed a federal lawsuit Tuesday against insurance companies they say won’t pay for coronavirus-related business interruption claims."
"Minor league baseball teams on June 23 sued their insurers for breach of contract, anticipatory breach of contract and declaratory relief, seeking business interruption coverage for their “catastrophic financial losses” stemming from the “first-ever cessation of Minor League Baseball” due to the novel coronavirus pandemic and Major League Baseball’s decision that its teams will not satisfy their contractual duties to provide players under contract to their affiliated teams in the Minor League (Chattanooga Professional Baseball LLC, et al. v. Philadelphia Indemnity Insurance Co., et al., No. 20-03032, E.D. Pa.)."
"Fifteen minor league baseball teams have thrown their insurers quite the curve ball, by filing lawsuits against the companies that allege breach of contract for not covering business interruption claims due to the COVID-19 pandemic."