![]() ![]() at 171.) The 14 policy limits coverage to loss or damage caused by a “Covered Cause of Loss.” (Id.) The 15 definition of Covered Cause of Loss includes all risks except those explicitly excluded under the 16 policy. at 9-11.) The Business Income provision states that 12 Zurich will pay for lost business income sustained due the suspension of operations caused by 13 “direct physical loss of or damage to property” at Body Xchange’s premises. 10 First, Body Xchange alleges the Business Income provision provides coverage for lost income 11 due to the government ordered closures. 1-1 at 9, ¶ 20.) The insurance policy 9 included several coverage provisions, two of which Body Xchange asserts as its basis for liability. at 16-17.) 7 Body Xchange entered into an insurance agreement with Zurich that provided coverage 8 from Septemto September 3, 2020. at 16, ¶ 55, 258-60.) Body Xchange, as a non-essential business, 5 complied with these orders and ceased its operations until June 8, 2020, when the government 6 permitted the reopening of fitness centers. at 15-16, 255-56.) On April 2, 2020, the public health officer of Kern County 3 ordered all gyms and fitness centers to remain closed as part of the government’s efforts to slow 4 the spread of COVID-19. 1-1 at 13, ¶ 36.) On March 19, 2020, in response to the rapid growing COVID-19 pandemic, the 1 1 governor of California issued a stay-at-home order that required the closure of any non-essential 2 businesses. FACTUAL BACKGROUND Body Xchange owns and operates six fitness centers in Bakersfield, California. 25 15.) For the reasons set forth below, the Court GRANTS Zurich’s motion. (Id.) On May 12, 24 2021, Zurich filed a motion for judgment on the pleadings seeking dismissal of all claims. 1-1 at 4-25.) Body Xchange claims that Zurich 22 American Insurance Company breached its insurance contract and breached the implied covenant 23 of good faith and fair dealing by refusing coverage for the lost business income. 18 19 Body Xchange Sports Club, LLC initiated this action to recover lost business income 20 caused by having to suspend operations pursuant to government closure orders issued to mitigate 21 the spread of the COVID-19 pandemic. 1:20-CV-01518-JLT-CDB ORDER GRANTING DEFENDANT’S MOTION FOR JUDGMENT ON THE PLEADINGS (Doc. 15 ZURICH AMERICAN INSURANCE COMPANY, a New York corporation and DOES 1-25, inclusive, 16 Case No. 1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10 11 12 BODY XCHANGE SPORTS CLUB, LLC, a California Limited Liability Company, 13 Plaintiff, 14 v. ![]()
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