The owner of Musso and Frank Grill filed a federal lawsuit Tuesday against its insurance carrier for allegedly failing to cover the restaurant’s loss of income during the coronavirus outbreak, according to a published report.
The 243-page lawsuit, filed in the U.S. District Court in Los Angeles, claims Mitsui Sumitomo Insurance USA, Inc. failed “to adequately consider or investigate claims, and that it has done so to other policyholders to earn `illicit profits’ at their expense,” according to dot.la, a website covering the Los Angeles area’s startup and tech community.
After the 2003 SARS outbreak, regulators put in place an exception to exclude coverage for “loss or damage” due to “virus, bacterium, or other microorganism that induces or is capable of inducing physical distress, illness or disease,” and Musso and Frank’s specific policy includes similar language, dot.la reported.
Musso and Frank Grill, located at 6667 Hollywood Blvd., suspended operations after Mayor Eric Garcetti issued his March 15 order banning restaurants and bars from serving food and alcohol on their premises.
Musso and Frank Grill is Hollywood’s oldest restaurant, opening in 1919. It has long attracted an entertainment industry clientele.