Dino Palmieri Salon leads class action against State Auto Insurance Company for coronavirus business interruption coverage

CLEVELAND, April 27, 2020 /PRNewswire/ -- A big name in the beauty industry is the lead plaintiff in a class action lawsuit filed against State Auto Mutual Insurance Company, an Ohio-based insurer. Like many businesses in Ohio, including all hair salons, Dino Palmieri has been forced to shutter all ten of his locations. But when he sought to collect on the Salons' business interruption coverage, State Auto refused to pay.

The Ohio law firms of Spangenberg, Shibley & Liber, LLP and Rutter & Russin, LLC brought the suit on behalf of Palmieri, and all other businesses in Ohio that were denied coverage under State Auto's policy. The Spangenberg and Rutter firms previously filed the first coronavirus coverage lawsuits in Ohio on behalf of the restaurant group that owns and operates the Marble Room in downtown Cleveland and J3 Clothing Company, a prominent men's fashion retailer on the east side. Marble Room and J3 filed on behalf of all businesses in Ohio that were denied coverage for coronavirus-related business interruption losses against Cincinnati Insurance Company and the Lightning Rod Mutual Insurance Company, respectively, both Ohio-based insurers.

With no way of generating revenue to pay employees, rent, utilities, and necessary expenses, Palmieri turned to his business interruption coverage, but was denied. "Year after year we pay for business interruption insurance, but now, when we need the coverage, the insurance company says no. It's infuriating," says Palmieri. 

Lawyers Nick DiCello and Bobby Rutter represent and are investigating claims for hundreds of businesses in Ohio and across the country that have been denied business interruption coverage. "Mr. Palmieri feels the same way as all of our clients. These business owners paid for insurance to protect them and they feel like the carriers are not holding up their end of the deal," said DiCello, a partner at the Spangenberg firm. A restaurant owner himself, Rutter and his father have been representing policyholders against insurance companies for decades and know how critical business interruption coverage is. "The insurance carriers that issued these policies should be paying these claims. Period," says Rutter.

With decades of experience litigating and trying cases against the insurance industry, the Spangenberg and Rutter firms represent and are being sought out by businesses across the country to evaluate their claims for coronavirus-related business interruption coverage. The firms are actively litigating cases against multiple different carriers in different states.

If your business has been negatively affected by the pandemic, please call Nick DiCello at 877-976-7829 or email him at [email protected].

SOURCE Spangenberg, Shibley & Liber, LLP