Ill. Federal Judge Refuses to Dismiss McDonald’s COVID-19 Coverage Action

CHICAGO — An Illinois federal judge has refused to dismiss an action in which McDonald’s seeks insurance coverage for an underlying action accusing it of allowing its franchises to remain open during the COVID-19 pandemic without enhanced health and safety standards.

In a Feb. 22 order, Judge Charles P. Kocoras of the U.S. District Court for the Northern District of Illinois concluded that the underlying complaint potentially gives rise to coverage, triggering Austin Mutual Insurance Co.’s obligation to defend McDonald’s.

McDonald’s Corporation, McDonald’s USA LLC, and McDonald’s franchise owners Lexi Management LLC and DAK4 LLC are defendants in a Cook …