A Fond du Lac, Wis.-based business insurance company has found itself at the center of an opening salvo of lawsuits brought by the owners of restaurants, whose doors and businesses have been slammed shut by state closure orders as part of the effort to combat the COVID-19 outbreak.
Since late March at least three lawsuits have been lodged in Chicago courts against Society Insurance, accusing the insurer of wrongly failing to honor business interruption claims filed by the owners of local restaurants who have remained closed since the middle of March, under an executive order by Illinois Gov. JB Pritzker.
Most recently, Society was sued by the owners of the Maillard Tavern. In the lawsuit filed in Cook County Circuit Court on April 14 by attorneys from the firm of Romanucci & Blandin, owners Tony Priolo and Ciro Longobardo said they are seeking a judgment from the court forcing the insurance company to honor the insurer’s alleged obligations to the Maillard Tavern “during their time of need.”
The lawsuit was announced in a release from the Romanucci firm, along with their partners Rutter & Rusin LLC and Spangenberg Shibley & Liber LLP, each of Ohio.
According to the release, the firms are partnering to introduce a spate of similar litigation against insurers who are allegedly routinely refusing business interruption claims brought by restaurant owners who have been forced to close by government order amid the COVID-19 shutdown.
“Clearly, restaurant owners sustained deep and devastating financial losses through no fault of their own; rather, they are complying with the state of Illinois’ order to slow the spread of the COVID-19 virus,” said Antonio Romanucci, of Romanucci & Blandin in the release. “In an effort to protect their businesses, including their employees, from a situation like this, our plaintiff did the responsible thing in months and years gone by, and procured business interruption insurance that included a provision for losses incurred due to a ‘necessary suspension’ of their operations due to a government order.”
In the release, the The Maillard Tavern owners said: “We have lost our livelihoods and our ability to pay our valued employees, our vendors and our rent. As responsible business owners, we paid our business insurance premiums but have been denied the benefits of that policy when we need it most.
“This problem is not just about our company, this is an industry-wide problem that could crush our economy and community if all of the restaurants, retailers and others businesses lose the safety net we depended on from insurance.”
The Maillard lawsuit follows similar separate actions lodged in Chicago federal court in late March by a group of restaurant and movie theater owners.
On March 27, Society Insurance was sued by a group of plaintiffs, including the owners of the Big Onion Tavern Group; McBride’s; Headquarters Beercade; Hyde Park’s Harper Theater; and Legacy Hospitality, which operates the Welcome Back Lounge, The Vig and The Whale, all in Chicago; among other establishments.
And on March 31, the owners of Chicago’s iconic Billy Goat Tavern also sued Society Insurance.
All complaints asserted Society and other insurers are denying “nearly every claim” for business interruption coverage, as a result of the restaurant and theater closures mandated in Illinois and elsewhere as part of the response to the COVID-19 pandemic.
Billy Goat is represented by the Duncan Law Group LLC, of Chicago.
Big Onion, Legacy and their co-plaintiffs are represented by the firm of King & Spalding LLC, of Chicago and Atlanta.