Ill. Federal Judge Dismisses Insurer’s COVID-19 Coverage Action Against Restaurant Owners

CHICAGO — An Illinois federal judge has dismissed an insurer’s lawsuit against a group of Denny’s and Ruby Tuesday franchise owners seeking a ruling that it is not obligated to cover their COVID-19-related losses, ruling that abstention is warranted because the action is duplicative of a lawsuit filed by the defendants in Ohio state court.

In a Nov. 3 order, Judge John R. Blakey of the U.S. District Court for the Northern District of Illinois concluded that abstention under the Wilton-Brillhart doctrine is appropriate because State Auto Property and Casualty Insurance Co. “seeks solely declaratory relief while an action pending …