FEMA now reimbursing at 100%
FEMA has implemented new cost sharing adjustments with governments who’ve made COVID-19 declarations, paying Public Assistance projects at a 100% federal cost share. There’s also another dismissal of a business interruption (BI) insurance coverage lawsuit that went all the way to trial. Plus, a challenge to Palm Beach County’s mask mandate is going to the Florida Supreme Court. It’s all in our coronavirus update this week.
Federal Cost Sharing: FEMA’s 100% cost share adjustment is in accordance with President Biden’s Jan. 21 memorandum to “Extend Federal Support to Governors’ Use of the National Guard to Respond to COVID-19 and to Increase Reimbursement and Other Assistance Provided to States,” and the Feb. 2 memorandum on “Maximizing Assistance from the Federal Emergency Management Agency.” All eligible work, including emergency medical care, emergency feeding and at-risk sheltering covered under the Public Assistance program from Jan. 20, 2020 through Sept. 30, 2021 is included under this guidance. The increase in funding helps reduce the financial burden of states, tribes and territories as they continue working to assist residents affected by the coronavirus. FEMA is also retroactively reimbursing recipients of previously awarded Public Assistance projects to increase the federal funding from 75% to 100%.
BI Suit: It may be the first business interruption (BI) insurance coverage case to make it to trial but it has ended just as almost all of the others – dismissed. Oceana Grill in New Orleans had sued Lloyd’s claiming the coronavirus and the resulting local government order ending on-site dining created a $4 million loss. The owners claimed physical damage, even citing Mayor LaToya Cantrell’s public order which said the virus had the “propensity to attach to surfaces, causing property loss and damage in certain circumstances.” As we reported in January, all the major BI cases here in Florida to date have been dismissed.
Mask Challenge: While Florida has no statewide mask mandate, some local governments, including Palm Beach County, implemented local emergency orders last spring. Five county residents there filed a lawsuit seeking a temporary injunction, claiming an alleged violation of privacy and due-process rights. A Circuit Court disagreed. And the 4th District Court of Appeal likewise disagreed that wearing a mask violated the right to refuse medical treatment, as the five then claimed. Now the case is being appealed to the Florida Supreme Court, which will decide whether to consider hear it. A similar case in Alachua County is before the 1st District Court of Appeal.
LMA Newsletter of 3-1-21
