PHILADELPHIA – A local beer garden has launched class action litigation against the Lloyd’s of London insurance company for failing to provide it with business interruption coverage during the coronavirus pandemic.
Independence Restaurant Group, LLC (doing business as “Independence Beer Garden”) of Philadelphia filed suit on May 20 against the London-based insurer in the U.S. District Court for the Eastern District of Pennsylvania.
Lloyd’s of London had provided the plaintiff with a one-year insurance policy covering the dates of Aug. 14, 2019 to Aug. 14, 2020, which according to the lawsuit, included coverage for, among other things, the building, personal property and business income with extra expense and rental income,
After the pandemic resulted in executive orders from Pennsylvania Gov. Tom Wolf declaring that “non-life sustaining” businesses would be shut down, the suit states the plaintiff suffered significant losses and therefore, submitted a claim declaring such to the defendant.
Despite having an “all-risk” policy which did not have virus or pandemic exclusions, the plaintiff assert their insurance claim was still rejected by Lloyd’s.
“Plaintiff timely submitted a claim for loss of business income and related losses under the policy arising from the COVID-19 pandemic and civil authority shutdowns of businesses in the Commonwealth of Pennsylvania. After more than 30 days, Lloyd’s has failed to provide coverage, and has communicated its intention to deny any claims submitted by plaintiff and class members for losses arising from the COVID-19 pandemic or associated civil authority shutdowns,” the suit states.
“On information and belief, Lloyd’s position is that its insurance policies do not provide coverage for business income losses based upon the allegation that there is no physical loss or damage to the plaintiff’s property. Plaintiff also believes that Lloyd’s will assert that closure for civil authority coverage requires physical damage to another property.”
The plaintiff says this same denial of coverage has taken place with other clients of Lloyd’s in Pennsylvania, numbering in the hundreds, thereby making the certification of the case as a class action appropriate.
The plaintiff is seeking a declaratory judgment saying the pandemic and related shutdown orders activate business interruption coverage for it and other members of the class, such other and further relief as the Court may deem appropriate and a trial by jury.
The plaintiff is represented by Daniel J. Mann, Edward S. Goldis, Andrew Kevin Mitnick, Bethany R. Nikitenko and Alan Feldman of Feldman Shepherd Wohlgelernter Tanner Weinstock & Dodig, in Philadelphia.
The defendant has not yet secured legal counsel.
U.S. District Court for the Eastern District of Pennsylvania case 2:20-cv-02365
From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nick.malfitano@therecordinc.com