Anzalone Law Offices files series of suits regarding business losses from COVID-19

WILKES-BARRE — A local law firm has filed a series of suits in Luzerne County Court, arguing on behalf of several local businesses that the loss of revenue caused by COVID-19 should be covered by business interruption insurance.

The Anzalone Law Offices filed a total of 10 suits on Friday, representing the following local businesses:

• Fox Hill Country Club

• Pennsylvania Bedding

• Dino’s Pizza Express

• The Knee Center

• Floral Designs

• Caffe Europa

• Dino’s Pizza-Terria

• Headstrong Hair

• Earl and Sedor

• CMB Dental

Each of the suits is targeting the respective businesses’ insurance companies, with Attorney Bill Anzalone saying the suits are being filed against defendants such as Erie Insurance, Selective Insurance and State Farm.

According to Anzalone, the suits come on the back of a question regarding whether or not Gov. Tom Wolf’s closure orders would count as a covered loss under a business interruption policy. Anzalone said his office is one of the first to file such a suit locally, but that many are being filed nationwide.

“There’s two levels in this,” Anzalone said. “Is the pandemic under Gov. Wolf’s orders a covered loss, and does it result in the loss of property for the insured?”

Anzalone said that, while he is arguing that it should be a covered loss, it’s very much an open question.

Anzalone’s argument ultimately boils down to the fact that the policies do not explicitly have an exclusion for shut-downs as a result of a pandemic. However, the suits indicate that insurance companies have still been denying coverage.

For example, in Dino’s Pizza Express’ suit against Travelers Casualty Insurance Company of America, the suit says the now-shuttered pizza restaurant had its claim under the business interruption policy denied on May 12, a bit more than a month before the shop announced its closure on social media.

“Defendant has denied and/or refused to acknowledge coverage for such losses, even though Plaintiff complied in good faith with the provisions of the policies,” Anzalone wrote in Dino’s suit against Travelers.

The suits are seeking for a judgment to be made regarding whether or not the policies should cover the closure of businesses as a result of Wolf’s orders, and, if they do, deem the denial a breech of contract.

Further, the suits say that the plaintiffs have suffered and continue to suffer damages as a result of the claims being denied.

Anzalone thinks that suits like these, which he says are already starting to work their way through court systems nationwide, could lead to new legal precedent regarding claims like these in the event of another pandemic — or, indeed, as we continue to deal with the fallout from this one.

“This is going to be a major decision in courts around the country,” Anzalone said.