Attorney Mark Geragos, who earlier this month sought a court order directing Travelers Insurance to provide compensation for financial losses suffered during Mayor Eric Garcetti’s March 15 shutdown order, said Tuesday that the insurance company is suing him over the matter.
Geragos says his firm has lost business as a result of the shutdown, but the insurance company has pointed out in court papers that the policies contain a clause stating that “losses resulting from a virus or bacteria, including business income losses, are not covered.”
In a short e-mail to reporters Tuesday, Geragos said Travelers, “after cashing our premium checks for years, decided yesterday that instead of paying our Business Interruption claim that they would hire a large Law firm to sue us in Federal Court instead. Apparently, their way of adapting to a Pandemic is filing lawsuits against their own insured.
“We welcome the opportunity to fight on behalf of small businesses against rank corporate greed and their legal enablers.”
Geragos says that even though his firm’s building in the 600 block of South Figueroa Street is technically exempted as an essential business under Garcetti’s order, access to the business has been sharply curtailed.
The law firm employs 25 attorneys, paralegals and ancillary staff members, according to Geragos. In December, the firm entered into a contract with Travelers to compensate it for business losses, including those suffered when the civil authority prohibits access to the property, according to court papers filed April 10 in preparation for a lawsuit.
Geragos and the firm believe Travelers has “no intention of providing any coverage … due to a loss and shutdown from a virus pandemic,” according to their court papers.
Travelers Indemnity Co. of Connecticut would not comment on the record, but the firm on Monday filed a complaint with the U.S. District Court for the Central District of California in Los Angeles seeking a declaratory judgment that the “losses of business income G&G has claimed related to the COVID-19 pandemic are not covered by the policies.”
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