The Pennsylvania Supreme Court denied a dentist's COVID-19 insurance claim, reversing the ruling of lower courts.
Here are eight things to know about the decision and the case:
1. Timothy Ungarean, DMD, is the owner of Smile Savers Dentistry, which has locations in Pittsburgh and Aliquippa, Pa.
2. Dr. Ungarean purchased a commercial property insurance policy from CNA and Valley Forge Insurance Co, which was intended to cover business-related losses.
3. The practices were forced to shut down in March 2020 due to COVID-19, leading to financial losses for Dr. Ungarean.
4. Dr. Ungarean then filed a claim for losses under his policy, which was denied by CNA because there was not any physical damage to the practices.
5. A trial court and the Superior Court ruled in favor of Dr. Ungarean, deciding that the shutdown was to be considered a direct physical loss and the language in the policy was ambiguous.
6. The policy reads "direct physical loss of or damage to", which the trial court interpreted as "direct physical loss of" and "damage to" as two separate meanings because the word "or" was included.
7. The Pennsylvania Supreme Court did not agree with the interpretation of the trial and Superior courts, claiming that the wording of the policy was in fact, "plain and unambiguous language".
8. The Supreme Court reversed the decision of the lower courts, deciding that Dr. Ungarean was not entitled to coverage because his properties did not "sustain any physical loss or damage."