In early March 2020, Legal Sea Foods (Legal) signed an insurance policy with Strathmore Insurance Co. (Strathmore). Shortly thereafter, Governor Baker issued an order prohibiting Massachusetts restaurants from providing on-premises food or beverage consumption. As a result of this order and similar orders in other states (COVID-19 restriction orders), Legal submitted a claim to Strathmore seeking coverage for business interruption losses. Strathmore denied the claim and, in May 2020, Legal sued Strathmore for two counts of breach of contract.
Recently, in NuVasive, Inc. v. Day, the United States Court of Appeals for the First Circuit upheld the decision of the United States District Court for the District of Massachusetts to apply Delaware law and grant an employer a preliminary injunction against a former employee related to a nonsolicitation clause.