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Famous Restaurant Sues over Coronavirus Shutdown Losses
March 25, 2020
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<p style="text-align: justify;">The Covid-19 pandemic has swept the nation and the world and in its wake is coming a huge wave of insurance related litigation. In perhaps the first lawsuit <em><a href="https://www.wcmlaw.com/wp-content/uploads/2020/03/Oceana-Petition.pdf">Oceana Petition</a></em> of what will most likely be a major trend of filings, Cajun Conti, the parent company for the New Orleans restaurant, Oceana Grill, has sued its insurer Underwriters at Lloyds London, for insurance coverage over coronavirus related business interruption, including in “the event of the businesses closure by order of Civil Authority.”</p>
<p style="text-align: justify;">The lawsuit was filed in Louisiana state court and specifically alleges that the Lloyds “all risk” policy restaurant losses due to the state mandated shutdown of the 500 person restaurant. The lawsuit references an order by Louisiana Governor, John Edwards, in response to the Coronavirus outbreak, banning gatherings of 250 or more people. In addition, the lawsuit references a restriction by New Orleans Mayor, LaToya Cantrell, ordering all restaurants to reduce their capacity by 50%. Since the filing of the lawsuit, restrictions have become even more strict, with the Governor issuing a statewide "stay at home" order until April 12.</p>
<p style="text-align: justify;">While some insurers have taken steps to limit the scope of coverage in these sort of situations after similar outbreaks such as SARS in 2003 and ebola in 2014 through various exclusions, the complaint alleges that here, there are no such relevant exclusions. This case represents merely the first drop in what could very be a torrential downpour of similar coronavirus related insurance coverage litigation.</p>
Thanks to Andrew Debter on his contribution to this post. Please email <a href="mailto:gcoats@wcmlaw.com">Georgia Coats</a> with any questions.