Des Moines, Iowa — The Iowa Supreme Court heard oral arguments in a case involving the closing of a business after the COVID emergency proclamation.
The insurance company for the Wakonda Club in Des Moines refused to pay for loss of income under its business interruption policy. Wakonda attorney, James Carney, says the lower court was wrong to say the loss required a physical alteration to its property. Chief Justice Susan Christensen asked this question.
The policy also has an exclusion for viruses causing a closing — but Carney says COVID was not the cause.
He says the Wakonda could have stayed open even with the virus — but had to close because of the proclamation. The Attorney for the Selective Insurance Company, Doug Haag says there was no damage to the building to cause the shutdown. He says the policy specifies that damages can be paid if there is damage.
He says Wakonda didn’t have damages to repair.
The Supreme Court heard the arguments in a special session Monday evening. They will rule on the case at a later date.
