Mudpie Inc. v. Travelers Casualty Insurance Co. of America
A children’s clothing and toy boutique has filed a brief with the United States Court of Appeals for the Ninth Circuit appealing a United States District Court decision that dismissed its claims against Travelers Casualty Insurance Company. The store, Mudpie, Inc., alleged that its insurer wrongfully denied business interruption coverage due to COVID related business shutdowns. The trial court ruled that the all-risk policy covered only those losses that constituted “permanent dispossession or deprivation” and that the temporary shutdowns therefore did not trigger coverage. Mudpie argues in its brief that this interpretation of a loss is not reasonable and that the case should be certified to be heard by the California Supreme Court. The petitioner’s request for the Ninth Circuit to certify this case is backed by their assertion that this case presents a novel question of California state law and that the court’s discretionary principles favor certification.