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Philadelphia Flyers Insurer Opposes Staying Case vs. Comcast Spectacor as ‘Unnecessary’

Defendant Factory Mutual Insurance opposes plaintiff Comcast Spectacor’s motion to indefinitely stay the proceedings against its insurer until the Pennsylvania Supreme Court decides two pending cases involving similar issues (see 2309150026), said the insurer’s memorandum Thursday (docket 2:23-cv-02476) in U.S.…

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District Court for Eastern Pennsylvania in Philadelphia. Spectacor, owner of the Philadelphia Flyers and the Wells Fargo Center, is suing Factory Mutual to recover losses it incurred when COVID-19 forced the cancellation or curtailment of Flyers' games in 2020 and 2021, alleging Factory Mutual refuses to honor the terms of the property insurance policy the team bought to protect it against catastrophic losses (see 2306290001). But the 3rd Circuit U.S. Court of Appeals, plus other courts nationally, have dismissed similar complaints on several grounds that apply in Spectacor’s case against Factory Mutual, said the insurer. Spectacor says important issues of Pennsylvania state law are at the heart of the two cases pending before the state Supreme Court, whose rulings in those cases could “govern the result” of Factory Mutual’s motion to dismiss. But Factory Mutual disagrees, arguing neither of those cases “has been briefed or argued, and they will likely not be decided for well over a year.” Putting Spectacor’s case on hold is “unnecessary” because the 3rd Circuit already decided in Wilson v. USI Insurance Services that under Pennsylvania law, Factory Mutual’s policy doesn't cover Spectacor’s losses, said the insurer’s opposition. Even if Pennsylvania's Supreme Court were to unexpectedly disagree with Wilson, and the overwhelming majority of state supreme and federal appellate courts that have reached the same result, it wouldn’t affect the outcome of Spectacor’s case against Factory Mutual, said the insurer.