STORY FROM: COVID-19 Litigation Report

Ala. Drama Studio, Store File COVID-19 Class Action Against Mt. Hawley Insurance

MOBILE, Ala. — An Alabama children’s drama studio and sportswear store have filed a class action against Mt. Hawley Insurance Co., contending business losses caused by COVID-19 government closures caused property damage that is covered under their policies.

In a May 8 complaint filed in the U.S. District Court for the Southern District of Alabama, Drama Camp Productions Inc. d/b/a Shades seek a declaratory judgment on behalf of themselves and a class of policyholders that the insurer is obligated to cover the losses.

After plaintiffs were forced to close their doors, they submitted claims to Mt. Hawley under the business-income ...

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