COVID Class Action Lawsuits Beginning to Show

Empty plate and tableware with online order menu

Many restaurants have felt the sting from COVID related shutdowns. From being unable to seat their patrons inside, to limiting the number of people that could enter their bars, restaurants have belled money severely and it has resulted in many places closing. Now some businesses have filed suit for lost income and other damages.

In New York, 50 businesses, including Ess-a-bagel, Grand Central Oyster Bar and Union Square Café have filed suit in Brooklyn on August 3rd, naming over 25 different insurance companies as defendants such as Chubb, Travelers and Zurich. Their suit alleges direct physical losses from lack of traffic and reconstruction in order to meet social distancing guidelines. They contend that they are owed coverage under all risk coverage. “They had to physically manipulate tables, chairs, and other equipment into less functional arrangements; install plexiglass or other makeshift barriers to prevent congregation; place markers on the floor or walls to indicate six-feet of separation; and redesign routes for entrance and exit,” the suit states.” [1] It’s the lack of businesses that lead to other establishments permanently closing their door and now the plaintiffs believe they could be next unless they can convince a court they can be covered.

These lawsuits will become more numerous as states struggle to reopen following a long lockdown. Restaurants may not survive unless they can find bailout money or win court cases like this. Consider your options if your business has been affected severely by this pandemic


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