First Texas Business Interruption Suit Filed in Harris County
Apr 1, 2020
Houston, Texas – March 26, 2020: Owner of a wig shop located in Humble, Texas filed petition in Harris County District Court, alleging that Twin City Fire improperly denied the wig shop’s claim for business interruption coverage due to the Covid-19 outbreak and subsequent Harris County “Stay Home, Work Safe” Order. The petition provides very little by way of facts, instead includes only sweeping, general statements about alleged material misrepresentations in regard to policy coverage. There is no specific allegation stating the specific policy provision(s) at issue or how the claim at issue triggered a specific policy coverage, term, exclusion or condition. The wig shop instead relies only upon the “Stay Home, Work Safe” Order as well as a March 19, 2020 Memorandum issued by the U.S. Department of Homeland Security.
Damages claimed include benefit of the bargain along with attorneys fees and unspecified damages interest provided by the Texas Insurance Code and common law breach of the duty of good faith and fair dealing.