Cincinnati Insurance Says Dallas Restaurant Owner’s Coverage Action Belongs in Federal Court

DALLAS — Cincinnati Insurance Co. has opposed a plaintiff’s motion to send a COVID-19 business interruption coverage action back to state court, arguing that the Dallas restaurant chain fraudulently joined two in-state defendants to destroy diversity.

In a July 17 brief filed in the U.S. District Court for the Northern District of Dallas, the insurer contends that Vandelay Hospitality Group added insurance agent Baron Cass and his employer Swingle Collins Company LLC to keep the case in state court because the plaintiff believed it would be more favorable to its case.

Vandelay filed the action in the Dallas County District …