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Broker wins decision to escape COVID-19 business break suit



A district court judge on Tuesday dismissed a restaurant group's lawsuit against the insurance broker and ruled that damages sought by the policyholder for alleged negligence in covering business interruptions could not be recovered under Texas law.

In the case Vandelay Hospitality Group LP d / b / a Hudson House v. The Cincinnati Insurance Co. et al the Dallas-based policyholder, who runs three restaurants, sued his insurance company to deny his claim to income lost during forced closures during the coronavirus pandemic and added his broker, Swingle Collins & Associates, to suit.

Vandelay claimed that Dallas-based Swingle Collins had said the Cincinnati insurance policy would cover restaurants for closures related to a virus or pandemic.

In his motion to resign, Swingle Collins claimed that the suit was prevented because Vandelay's "alleged" financial loss "damages are the same damages sought against Cincinnati in TS's breach of contract. "

In a decision on Swingle's proposal, U.S. District Court Judge Sidney A. Fitzwater, of the Northern District of Texas in Dallas, said Vandelay failed to state a" reasonable claim on which exemption can be granted. " "

Judge Fitzwater said Vandelay sought to recover the amount of coverage it allegedly should have received under its policy.

incorrect explanations, "says court papers.

Jason H. Friedman, an attorney at Friedman & Feiger LLP in Dallas, representing Vandelay, said the restaurant group will submit a proposal for reconsideration. [1

9659002] A Swingle Collins lawyer did not immediately return a call for comment.

More insurance and risk management news about the coronavirus crisis here .


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