Oregon Mutual Business Insurance and Covid-19 Class Action

Like many restaurants, Nue Seattle was forced to curtail operations after state orders designed to reduce the spread of Covid-19. The complaint for this class action brings suit against its insurer, Oregon Mutual Insurance Company, which seeks to make sure that Oregon Mutual provides payments to the restaurant under its policy to compensate it for business losses.

Nue Seattle is a restaurant and bar in Seattle, Washington that specializes in “global street food” offered in sit-down meals.

On February 29, 2020, Governor Jay Inslee declared a state of emergency because of Covid-19, followed by other proclamations and orders. On March 16, he issued a proclamation on “Statewide Limits: Food and Beverage Services, Areas of Congregation.” It temporarily prohibited “any number of people from gathering in any public venue in which people congregate for purposes of … food and beverage service” and “the onsite consumption of food and/or beverages in a public venue…”

This order was to be in effect until March 31 but was later extended to May 31.

This was followed on March 23 with a “Stay Home—Stay Healthy” order requiring that people stay home when possible. It prohibited non-essential businesses from conducting business.

Nue has therefore not been able to use its premises for the purpose for which they were intended, that is, sit-down dining and drinking. The complaint puts it this way: “[Nue] has sustained direct physical loss and/or damages related to Covid-19 and/or the proclamations and orders.” The property, it says, cannot be used as intended.

Nue has a Businessowners Property Coverage with Oregon Mutual that provides Business Income Coverage, Extended Business Income Coverage, Extra Expense Coverage, Civil Authority Coverage, and Ingress or Egress Coverage. However, when it filed a claim, the claim was denied.

The April 10 denial letter says, “Oregon Mutual Insurance has completed its investigation into your claimed loss. Please be advised that Oregon Mutual Insurance can find no coverage … for your loss resulting from the Covid-19 event.” It also says, “Your loss appears to have been caused by the Covid-19 event. Our investigation determined that there was no direct physical loss of or damage to property. Because there is no direct physical loss or damage to property, there is no coverage…”

The complaint defines twenty classes and subclasses for this action.

The Business Income Coverage Breach of Contract Class is all persons and entitites in the US insured under an Oregon Mutual policy with Business Income Coverage who suffered a suspension of business at the covered premises related to Covid-19 or orders issued by Governor Inslee, other governors, or other civil authorities, and whose Business Income claim has been denied by Oregon Mutual.

For definitions of all the classes and subclasses, see the Complaint linked below at pages 6-11.

Article Type: Lawsuit
Topic: Insurance

Most Recent Case Event

Oregon Mutual Business Insurance and Covid-19 Complaint

May 5, 2020

Like many restaurants, Nue Seattle was forced to curtail operations after state orders designed to reduce the spread of Covid-19. The complaint for this class action brings suit against its insurer, Oregon Mutual Insurance Company, which seeks to make sure that Oregon Mutual provides payments to the restaurant under its policy to compensate it for business losses.

Oregon Mutual Business Insurance and Covid-19 Complaint

Case Event History

Oregon Mutual Business Insurance and Covid-19 Complaint

May 5, 2020

Like many restaurants, Nue Seattle was forced to curtail operations after state orders designed to reduce the spread of Covid-19. The complaint for this class action brings suit against its insurer, Oregon Mutual Insurance Company, which seeks to make sure that Oregon Mutual provides payments to the restaurant under its policy to compensate it for business losses.

Oregon Mutual Business Insurance and Covid-19 Complaint
Tags: Business Insurance, Business Losses, Insurance