BELLEVILLE – Big Daddy's Disco Diner is suing its insurance carrier for allegedly denying its loss of business claim due to the COVID-19 pandemic.
Smeez Inc., doing business as Big Daddy's Disco Diner, individually and on behalf of all others similarly situated, filed a complaint Oct. 1 in the St. Clair County Circuit Court against Badger Mutual Insurance Company, alleging breach of contract and breach of implied covenant of good faith and fair dealing.
Smeez alleges in its complaint that it purchased a commercial liability and property insurance policy from Badger Mutual for the period of March 15, 2020 to March 15, 2032 that includes losses sustained from business income. It claims its policy premiums were paid to date.
Smeez filed a loss of business claim on March 16, as a result of its restaurant and bar located in Belleville being closed during the state's coronavirus closure orders. Smeez alleges Badger Mutual denied its claim on May 13, stating the policy did not cover loss caused by "order of any civil authority including seizure, confiscation, destruction or quarantine."
Smeez claims its "losses were caused by measures taken by the State of Illinois government, to prevent the spread of COVID-19" and "were not caused by or related to coronavirus having been detected in or on Plaintiff's insured property" or through the state's seizure, confiscation, destruction or quarantine.
Smeez seeks compensation, interest and all other just relief. They are represented by David Cates of Cates Mahoney LLC in Swansea, Richard Shevitz, Lynn Toops and Amina Thomas of Cohen & Malad LLP in Indianapolis and J. Gerard Stranch, IV of Bransetter, Stranch & Jennings PLLC in Nashville, Tenn.
St. Clair County Circuit Court case number 20-L-0758