"The court held that the complaint sufficiently alleged that travel restrictions, the duty to mitigate damages, the need to flatten the curve, and stay-at-home orders may be the efficient proximate cause of Metallica's losses," said lead counsel, Jeffrey L. Schulman, a partner with Pasich LLP. "The court also noted our argument that the virus/disease may not be the cause of the loss because it still exists and yet, travel and gathering restrictions have eased and concerts are again being performed." (Credit: Romolo Tavani/Shutterstock)
The California Superior Court ruled it could not dismiss a pandemic-related event cancellation suit filed by heavy metal act Metallica against underwriters at Lloyd's of London, noting the case was still in its preliminary stage and a "proximate cause" of the loss hasn't been established yet.
"The court held that the complaint sufficiently alleged that travel restrictions, the duty to mitigate damages, the need to flatten the curve, and stay-at-home orders may be the efficient proximate cause of Metallica's losses," said lead counsel Jeffrey L. Schulman, a partner with Pasich LLP, in a statement. "The court also noted our argument that the virus/disease may not be the cause of the loss because it still exists and yet, travel and gathering restrictions have eased and concerts are again being performed. The decision also cited our allegation that the insurers cannot identify the efficient proximate cause of the loss because they conducted no meaningful investigation before denying coverage."
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