HOUSTON, April 21, 2020 /PRNewswire/ -- The Ammons Law Firm has filed one of the country's first class action lawsuits against an insurance company for failure to pay coronavirus-related claims.
The lawsuit, brought by a restaurant and bakery in Las Cruces, New Mexico, alleges that Continental Casualty Company, a subsidiary of CNA Financial Corporation that handles their property insurance operations, failed to honor its insurance contract and pay on the restaurant's business interruption, civil authority, extra expense, and "sue and labor" coverages.
"We are seeing an unprecedented number of businesses reaching out to us that are immediately being denied coverage for their business interruption insurance they have paid, in some cases, hundreds of thousands of dollars a year for," says Rob Ammons, lead attorney for the class action. "We are filing this to let business owners know that they deserve to get what they paid for. These insurance companies cannot be allowed to bankrupt businesses trying to re-enter the economy after the quarantine is over just to protect their bottom line."
In a class action lawsuit, one or a small group of plaintiffs brings the lawsuit on behalf of all people or businesses who are in the same position as the plaintiffs. This lawsuit asks the court to determine whether Continental wrongfully denied all claims based on COVID-19; whether the insurance contract applies to a business suspension caused by COVID-19; and whether Continental breached the insurance contract by denying all claims based on business interruption, income loss, or closures related to COVID-19 and the related closures.
The Ammons Law Firm is a Houston-based firm with a nationwide practice handling COVID Insurance cases.
The lawsuit is Cafe Plaza de Mesilla Inc. v. Continental Casualty Co., in the United States District Court for the District of New Mexico.
Ammons Law Firm
Case number: 2:20-cv-00354, U.S. District Court for the District of New Mexico
SOURCE Ammons Law Firm