Massachusetts
Massachusetts High Court Reheats Recipe in Restaurants' COVID-19 Insurance Denial
In a ruling against an upscale restaurant chain, the Massachusetts Supreme Judicial Court has affirmed its 2022 ruling that the COVID-19 virus does not trigger business interruption insurance because it does not cause “direct physical loss or damage.”
Davio’s restaurant chain sought to recover under its all-risk business policy issued by Strathmore Insurance Co. for businesses losses it suffered due to service restrictions and remediation efforts necessitated by the COVID-19 pandemic
Strathmore, a subsidiary of Greater New York Mutual Insurance Co., denied Davio’s claims on the basis that the loss of business income was not “caused by direct physical loss of or damage to property,” as required under the policy. Davio’s filed suit and a Superior Court judge granted Strathmore’s motion to dismiss. The restaurants then appealed from the judgment of dismissal.
Strathmore was the defendant in the precedent-setting 2022 case in which it was sued by a different Boston-area restaurant group, Verveine Corp. The Verveine ruling was the first by a state supreme court on COVID-19-related business interruption claims filed against insurers across the country, the majority of which insurers have won.
Noting the similarities between the Verveine and Davio’s cases, the Supreme Judicial Court said it discerned “no reason to distinguish ” the Davio’s case from the Verveine case two years ago and affirmed that ruling.
Massachusetts: First State Top Court Gives Industry a Win in Covid-19 Claims Case
Davio’s claimed that the virus became physically present at its restaurants and the presence of the virus caused it to take “extraordinary measures,” which included “closing certain operations and services, substantially modifying others, restricting access to many of the properties, enforcing physical distancing, and undertaking extensive active efforts to repair, restore, and remediate the facilities.”
The restaurant firm also maintained that some surfaces and objects retained residual infectious virus even after cleaning, and “no amount of cleaning could prevent aerosolized infectious particles from attaching to surfaces after cleaning.”
However, the restaurants were able to continue operating “at reduced levels” during the COVID-19 pandemic. Davio’s locations include Boston’s Seaport, Foxboro, Lynnfield, Braintree and Chestnut Hill.
The high court faced the same question as it had addressed in Verveine — whether there was any “direct physical loss of or damage to” property — and again concluded that those words from the insurance policy require a physical alteration of the property and the COVID-19 virus did not physically alter or affect any of the insured property.
On the question of what constitutes a physical alteration of property, Verveine again provided the guidance that “property has not experienced physical loss or damage in the first place unless there needs to be active repair or remediation measures to correct the claimed damage or the business must move to a new location.”
Thus, the “evanescent presence of a harmful airborne substance that will quickly dissipate on its own, or surface-level contamination that can be removed by simple cleaning, does not physically alter or affect property.” In contrast, the “saturation, ingraining, or infiltration of a substance into the materials of a building or persistent pollution of a premises requiring active remediation efforts” does constitute a physical alteration.
The court noted that similar distinctions have been noted in COVID-19 insurance cases across the country and courts have reached the same conclusion “even when presented with detailed allegations regarding how the COVID-19 virus affects the air and surfaces around it.”
In Verveine, the Supreme Judicial Court assumed that the virus was physically present in the restaurants but explained that the suspension of business at the restaurants was “not in any way attributable to a direct physical effect on the plaintiffs’ property that can be described as loss or damage. As demonstrated by the restaurants’ continuing ability to provide takeout and other services, there were not physical effects on the property itself.”
Davio’s specifically alleged that “there have been hundreds (if not thousands) of infected guests on-site since the pandemic’s outset.” But the high court found that these allegations do not show that the virus physically altered or affected the insured property in any way. Rather, they show the “evanescent presence of a harmful airborne substance,” and that there was no direct physical loss or damage to property.
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Massachusetts
Healey shares plan to limit health insurance cost increases for Massachusetts residents
Gov. Maura Healey said Thursday that the state is spending an additional $250 million to limit premium increases for residents who have insurance through the Massachusetts Health Connector.
After Congress let Affordable Care Act tax credits expire at the end of last year, more than 300,000 people in Massachusetts have been facing a potentially steep increase in their health care bills.
The governor’s office said those enrolled in ConnectorCare who make below 400% of the of the federal poverty level, which is $62,600 for an individual or $128,600 for a family of four, will see “little to no premium increases.”
Under the plan, Healey’s office said a 45-year-old couple with two kids in Fall River will see their monthly health insurance costs rise from $166 to $206. Without the new funding, the governor says they would be paying $452 a month.
“While President Trump continues to increase health care costs, we are taking the strongest action in the nation to address them and keep costs as low as possible for families,” Healey said in a statement. “Despite this increased state investment, far too many people will still see their premiums increase because of the White House.”
The U.S. House of Representatives is set to approve a three-year extension of the health care tax credits. While it appears unlikely to pass the Senate, senators have talked about a compromise plan that could include a two-year extension with added reforms. President Trump hasn’t offered a specific health care plan, but said subsidies going to insurance companies should “go to the people” instead.
The $250 million is coming from the Commonwealth Care Trust Fund, which gets its money from employer medical assistance contributions and financial penalties from residents who violate the state’s health care insurance mandate.
Massachusetts residents can sign up for health insurance coverage or switch their Health Connector plans until Jan. 23 if they want to be covered by Feb. 1.
Massachusetts
Minnesota childcare fraud allegations spark audit request in Massachusetts: ‘Serious risks’
Fraud allegations in Minnesota’s childcare system are prompting two Massachusetts Republican lawmakers to ask the Healey administration to conduct a “top-to-bottom audit” of a Bay State voucher program.
State Reps. Marc Lombardo, R-Billerica, and Nicholas Boldyga, R-Southwick, say they’re alarmed after seeing national reports of fraud in childcare subsidy programs, pointing specifically to widespread allegations in Minnesota.
Their concerns have prompted them to ask Gov. Maura Healey to direct Education Secretary Patrick Tutwiler to “urgently conduct” an audit and review of the Massachusetts Child Care Financial Assistance program to identify any potential fraud and vulnerabilities here.
Child Care Financial Assistance helps low-income families pay for childcare in Massachusetts.
“While Massachusetts has not yet been directly implicated in the same manner, the similarities in program structure, relying on voucher reimbursements to providers for low-income families, raise legitimate questions about whether comparable fraud or waste could be occurring here undetected,” Lombardo and Boldyga wrote in a joint letter to Healey on Wednesday.
“Our Commonwealth invests hundreds of millions of dollars annually in this critical program to support working families and early education,” they added. “We owe it to Massachusetts taxpayers and the families who genuinely need this assistance to ensure every dollar is spent appropriately and reaches its intended purpose.”
The governor’s office did not immediately respond to a Herald request for comment on the letter.
Early Education and Care Commissioner Amy Kershaw has said that Massachusetts is not facing disruption to its $293 million share of federal childcare payments amid a nationwide freeze in response to the Minnesota fraud allegations.
Kershaw has also added that Child Care Financial Assistance is not being impacted, either. The state appropriates funds for the voucher program at the beginning of the fiscal year and then seeks federal reimbursement.
This fiscal year’s funding totals about $1.087 billion for the program, which covered more than 66,000 children in fiscal year 2025, according to a December report from the Massachusetts Taxpayers Foundation.
“Obviously, we are incredibly concerned about families across the country and in Minnesota who may lose access to Child Care Financial Assistance based on acts by the federal government,” Kershaw told Bay State childcare stakeholders on Monday.
Before the new year, the federal Administration for Children and Families froze all funding to Minnesota. All 50 states must now provide additional verification before receiving more funds.
Minnesota Democrats accuse the Trump administration of playing politics and hurting families and children as a result.
This all comes after a video surfaced on YouTube alleging fraud in childcare in Somali communities in Minnesota, to which Kershaw has said none of the allegations have been proven.
The Massachusetts early education and care commissioner noted how there have been similar videos posted in Massachusetts and other states like Ohio, California and Washington.
In their letter to Healey, Lombardo and Boldyga also highlighted how the U.S. Department of Health and Human Services has responded to the Minnesota allegations by closing loopholes that allowed payments without verifying attendance.
“These developments highlight serious risks in subsidized child care systems across the country,” the Republican lawmakers wrote, “including the potential for misappropriation of taxpayer funds on a massive scale.”
Lawmakers across the country are seeking similar reviews as Lombardo and Boldyga. In Michigan, State Senate Minority Leader Aric Nesbitt, a Republican, has asked for an audit of a state program that aims to help low-income families afford childcare there.
The Massachusetts audit would zero in on verifying that voucher payments to providers are based on documented child attendance records; cross-checking to detect potential “ghost children” or overbilling; and on-site inspections of voucher-receiving providers to confirm they are operating legitimate childcare programs, among other objectives.
“Such a thorough review would not only safeguard public funds,” Lombardo and Boldyga wrote, “but also strengthen confidence in a program that is vital to thousands of Massachusetts families.”
The Associated Press and Herald wire services contributed to this report.
Massachusetts
Massachusetts police officer struck and killed in line of duty; department mourns
A Massachusetts police department is mourning the death of one of its own after an officer was struck and killed while attempting to assist a broken-down driver on a highway.
The Uxbridge Police Department has hung black bunting above its main entrance as it receives condolences from across the Bay State following the incident early Wednesday morning.
The crash unfolded at about 12:45 a.m., when the officer was trying to help a motorist in the northbound lanes of Route 146, a main artery in the Worcester County town that borders Rhode Island.
Authorities identified the fallen officer on Wednesday afternoon as Stephen Laporta, 43, of Uxbridge. The Massachusetts State Police is investigating the crash.
“This is a devastating loss for our department and our community,” Police Chief Marc Montminy said in a statement. “Our thoughts and prayers are with the officer’s family, loved ones, and fellow officers during this incredibly difficult time.”
Gov. Maura Healey has ordered flags to be flown at half-staff at all state buildings in honor of LaPorta.
“I am heartbroken over the news of Officer Stephen LaPorta’s passing,” the governor said in a statement Wednesday afternoon. “He knew he was headed into a dangerous situation when he responded to the scene of a multi-vehicle crash, but like all of our officers do day in and day out, he put the public’s safety first – and he tragically made the ultimate sacrifice.”
Authorities closed Route 146 for hours after the crash, with investigators working the scene. The icy, frozen road reopened around 10 a.m.
Uxbridge First Holy Night, a community organization, offered its condolences to the department via social media, saying the loss is also felt “across our entire town.”
“Our officers are more than public servants — they are neighbors, friends, parents, children, and family,” the group stated. “When one of our own falls, we all grieve together.”
“Uxbridge is a close-knit community,” it added, “and in moments like this, we lean on one another. May we surround this family and our police department with compassion, strength, and support in the days ahead.”
Police departments from across the region sent cruisers to participate in a procession that accompanied a vehicle carrying LaPorta’s body to a medical examiner’s office before daybreak.
The Boston Police Patrolmen’s Association described the officer as a “fallen hero” and the death as “heartbreaking news.”
“Another police officer killed in the line of duty. This time in Uxbridge,” the association stated in a social media post. “The officer was involved in a motor vehicle crash while attempting to assist a motorist on Rte. 146 early this morning. Our thoughts and prayers are with the officer’s family and the entire Uxbridge Police Department during this incredibly difficult time.”
State Rep. Mike Soter, whose Central Massachusetts district includes Uxbridge, said his “heart sank” when learning of the death.
“This is so close to home,” he said in a Facebook post. “May GOD watch over this officer’s family and his fellow officers today as they need our strength as a community. May the officer’s memory be eternal always!”
In June 2024, the Uxbridge Police Department celebrated LaPorta’s promotion to full-time patrolman.
“He may seem familiar to you all because Ofc. LaPorta has already been actively serving our wonderful town as a full-time Dispatcher and working part-time patrol shifts,” the department stated in a Facebook post. “He has put in the work to switch his role up and come to the patrol side full time! Let’s give him a warm congrats Uxy!”
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