A Third Circuit panel vacated an insurer's quick win against a nursing home company facing claims from long-term care residents who contracted COVID-19, saying the coverage fight wasn't yet ripe for the district court because the company hadn't met its policy's $3 million self-insured retention threshold.

The Pennsylvania federal court did not have subject-matter jurisdiction when it handed a summary judgment win to National Fire and Marine Insurance Co., the panel said in a nonprecedential opinion Monday, noting there wasn't a "real and substantial threat" of harm to the insurer if the win wasn't entered.

Genesis Healthcare Inc., a national nursing home company, was required under its policy to pay the first $3 million per healthcare event, according to case filings. National sued Genesis in April 2022, seeking a declaratory judgment that COVID-19 was not a single healthcare event under the policy, meaning Genesis would have to pay a self-insured retention, or SIR, for each of its facilities before getting coverage for the patient lawsuits.

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Genesis Healthcare Inc. is represented by Pamela D. Hans, John P. Lacey and Rhonda D. Orin of Anderson Kill.

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