JOHNSTOWN – A Western Pennsylvania group of medical centers has filed a class action lawsuit against Travelers Insurance Company, alleging the insurer has not covered losses incurred by the center and other businesses like it during the coronavirus pandemic.
Windber Hospital (doing business as “Chan Soon-Shiong Medical Center”) of Windber filed suit on April 23 in the U.S. District Court for the Western District of Pennsylvania versus Travelers Property Casualty Company of America, of Hartford, Conn.
Per the plaintiff, it held an insurance policy with Travelers that took effect on Oct. 19, 2019 and was to last for the duration of one year, Oct. 19, 2020.
“The Travelers Policy is an ‘All Risks’ policy which provides coverage for losses to the insured premises unless specifically excluded. The Travelers Policy does not exclude the losses caused by the coronavirus pandemic. The Travelers Policy provides coverage for the losses incurred by plaintiff, Medical Center, as a result of the coronavirus pandemic and the actions of the government in response thereto,” the lawsuit states.
On March 6, Pennsylvania Gov. Tom Wolf issued a Proclamation of Disaster Emergency due to the coronavirus and in subsequent weeks, other orders required the closure of all “non-life sustaining businesses” and state residents to stay at home whenever possible (with limited exceptions).
As a result of both the impact of the virus and the governor’s orders, businesses like the plaintiff’s which operated in closed environments have been forced to shut down and furlough their employees, in addition to sustaining commercial losses on several fronts.
The plaintiff believed those losses were covered by their insurance policy from Travelers, and made claims to the defendant.
However, the defendant denied paying the plaintiff’s claim requests.
“Defendant, Travelers, has wrongfully denied the claims plaintiff, Medical Center, for recovery of damages caused by the COVID-19 virus and referenced orders. Plaintiff, Medical Center, is entitled to a declaration that the policies of insurance issued by defendant, Travelers, provide coverage for the losses caused by the COVID-19 virus and referenced orders. Plaintiff, Medical Center, is entitled to an order enjoining defendant, Travelers, from denying coverage to insureds for business income, extra expense, contamination, civil authority and other coverages for losses caused by the COVID-19 virus and referenced orders,” the suit states.
Plaintiff counsel Scott B. Cooper says the intent behind lawsuit is to ensure Windber receives the insurance it both bought and deserves.
“This is why insurance is purchased. Windber is only asking that Travelers meet its promise to cover for the losses caused by its business being interrupted and procedures being restricted by the COVID-19 Emergency Declaration,” Cooper stated.
“Windber should get what it paid for, which will go a long way towards making sure citizens of Pennsylvania continue to receive quality health care.”
The fourth-largest employer in Somerset County, Windber Hospital employs approximately 450 people, holds 54 beds and offers a diverse array of medical care to its patients.
In the instant class action lawsuit, a successful class certification would mean the preservation of any putative plaintiffs’ claims through a tolling of the statutes of limitations associated with those same claims.
The plaintiff seeks the court to enter an order enjoining Travelers from further denying coverage to it for losses caused by the coronavirus and the governmental orders, judgment mandating the payment of same under the policy, plus a trial by jury.
The plaintiff is represented by John P. Goodrich of Goodrich & Associates in Pittsburgh, Scott B. Cooper of Schmidt Kramer in Harrisburg, James C. Haggerty of Haggerty Goldberg Schleifer & Kupersmith and Jonathan Shub of Kohn Swift & Graf, both in Philadelphia.
The defendant has not yet secured legal counsel.
U.S. District Court for the Western District of Pennsylvania case 3:20-cv-00080
From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nick.malfitano@therecordinc.com