L.A. Restaurant Owner Demands Business Interruption Coverage in Proposed Class Action

LOS ANGELES — The owner of two Los Angeles restaurants is seeking a declaratory judgment that AmGUARD Insurance Co. must cover business interruption losses arising from COVID-19-related government closure orders, alleging that they cause “direct physical loss of or damage” to property.

In a class action complaint originally filed in the Los Angeles County Superior Court against AmGUARD and “Does 1 through 20,” Plan Check Downtown III also asserts claims for breach of contract, bad faith, and unfair business practices under California Business & Professions Code § 17200.

AmGUARD removed the action to the U.S. District Court for the Northern …