Dickie Brennan & Co., Inc. v. Lexington Ins. Co., 2011 U.S. App. LEXIS 5843

Hurricane Gustav approached Louisiana; New Orleans Mayor Nagin issued a mandatory evacuation order for the West Bank on Aug 31 and the East Bank later that day.
The Brennans’ restaurants were insured by Lexington; the policy includes a civil authority provision covering business income loss due to civil authority actions prohibiting access to the described premises because of property damage elsewhere.
The evacuation order itself did not reference any property damage in Louisiana, Cuba, Jamaica, the Dominican Republic, or Haiti; no actual property damage occurred in Louisiana.
The Brennans argued that Caribbean damage caused by Gustav qualified as damage to property other than the described premises, creating the nexus required for coverage.
The district court granted summary judgment for Lexington, concluding there was no nexus between the evacuation order and any damage to property other than the described premises.
The Fifth Circuit affirmed, holding that the Brennans failed to establish the necessary nexus between prior damage abroad and the civil authority order.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Does the civil authority coverage require a nexus between the order and prior damage?	Brennans: prior Caribbean damage satisfies nexus to trigger coverage.	Lexington: no nexus shown between the order and any prior damage; damage must be proximate to the insured premises or causally linked.	No nexus proven; no coverage.
Does Louisiana law require a causal link between prior damage and the civil authority order?	Brennans rely on a looser standard; prior damage can trigger the order.	Lexington: policy requires a close causal link; order based on threat, not prior damage.	Requires a close causal link; none shown.
Should South Texas Medical Clinics control the outcome?	Argues different state law standards apply and favor Brennans.	South Texas supports no nexus; the order was not caused by prior damage.	Affirmed district court; no coverage.

United Air Lines, Inc. v. Insurance Co. of State of Pa., 439 F.3d 128 (2d Cir. 2006) (civil authority coverage requires a direct link between damage and order; lack of such link defeats coverage)