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Ammons Law Firm Files Insurance Class Action Lawsuit for Failure to Pay Coronavirus-Related Claims

The Ammons Law Firm has filed one of the country’s first class action lawsuits against an insurance company for failure to pay coronavirus-related claims.

The lawsuit, brought by a restaurant and bakery in Las Cruces, New Mexico, alleges that Continental Casualty Company, a subsidiary of CNA Financial Corporation that handles their property insurance operations, failed to honor its insurance contract and pay on the restaurant’s business interruption, civil authority, extra expense, and sue and labor coverages.

In a class action lawsuit, one or a small group of plaintiffs brings the lawsuit on behalf of all people or businesses who are in the same position as the plaintiffs. This lawsuit asks the court to determine whether Continental wrongfully denied all claims based on COVID-19; whether the insurance contract applies to a business suspension caused by COVID-19; and whether Continental breached the insurance contract by denying all claims based on business interruption, income loss, or closures related to COVID-19 and the related closures.

Whether your business is covered for these losses is a complicated question that requires a close reading of your insurance policy. If you think you might have a case against your insurer for failing to pay for your business losses, call the Ammons Law Firm today to set up a free consultation. The Ammons Law Firm is offering a free, “no-risk” reviews of insurance policies for businesses that have been closed during the COVID-19 pandemic and represents businesses on a contingency basis, meaning they do not pay any fees unless there is a recovery on their behalf. To have us review your policy, please email it to covidclaim@ammonslaw.com.

The Ammons Law Firm is a Houston-based firm with a nationwide practice handling COVID Insurance cases.

The lawsuit is Cafe Plaza de Mesilla Inc. v. Continental Casualty Co., in the United States District Court for the District of New Mexico.

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