August 14, 2020
On Wednesday, the Judicial Panel on Multidistrict Litigation ruled against the centralization of hundreds of cases filed against insurance companies in the wake of the COVID-19 shutdowns. All of these cases were filed as a result of insurance companies denying business interruption coverage to businesses due to the nationwide pandemic shutdowns. The Panel noted that these cases involved more than one-hundred insurers and an “industry-wide MDL in this instance will not promote a quick resolution of these matters.”
The JPML cited too few common questions of fact to warrant mass centralization of all of these cases. Still, the Panel left open the possibility of smaller MDL’s against single insurers. The Panel specifically suggested that cases against The Hartford, Cincinnati Insurance Co., various underwriters at Lloyd’s of London and Society Insurance Co. could be suitable for MDLs. The Panel asked counsel for those insurers to submit responses on this issue by August 26.
Jonathan Shub of the Shub Law Firm said, “This was like trying to fit a square peg into a round hole.” Mr. Shub does not see single insurer MDLs as the answer, either. He notes that even with the same insurer, policies and questions of fact and law can vary widely state to state. To Shub, coordination on a state level against a single insurer is the only coordination that makes sense.
For example, courts could follow the lead of a Pennsylvania judge who last month issued an order coordinating numerous cases involving denied business interruption coverage against Erie Insurance in her court for “pre-trial matters, trial, and full and final resolution.”
The Shub Law Firm is currently part of the plaintiffs’ attorney team leading the litigation against Erie Insurance in Pennsylvania State Court.
SHUB LAW FIRM CONTINUES TO INVESTIGATE DENIED BUSINESS INTERRUPTION CLAIMS
The attorneys at Shub Law, along with co-counsel, have filed a number of lawsuits on behalf of small businesses against insurance companies that denied their business interruption insurance claims. We continue to investigate denied business interruption claims against insurance companies throughout the nation. Contact us today if you have been denied business interruption coverage.
If you or someone you know has been denied on a claim for business interruption insurance, please contact the firm via email at firstname.lastname@example.org or give us a call at 856-772-7200. Our firm is still in full operation and will remain dedicated to helping consumers in need during this difficult time. Our firm is at the forefront of very important litigation against insurance companies throughout the nation.