STORY FROM: COVID-19 Litigation Report

Hollywood Restaurant Sues Insurer for COVID-19 Business Interruption Losses

LOS ANGELES — The owner of a 100-year-old Hollywood, Calif., restaurant has sued its insurer in federal court, accusing it of denying its claim for business interruption losses arising from its government-mandated closure due to the COVID-19 pandemic.

In an April 21 complaint filed against Mitsui Sumitomo Insurance USA Inc. in the U.S. District Court for the Central District of California, The Musso & Frank Grill Company Inc. says coverage was triggered under its policy’s “Business Income Loss/Civil Authority” by the government’s “stay-at-home” orders — not the COVID-19 virus itself.

Plaintiff says it was forced to shutter the restaurant when, ...

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