Many businesses have struggled due to the pandemic, and many insurance claims have gone unanswered. Businesses purchased insurance that they believed covered them in the case that they experienced an interruption in business, and most of their claims were dismissed. A notable exception was made by Sharon Yuen, one of the attorneys with Callahan & Blaine. Her monumental victory is an important one not only for her client but for those battling insurance companies in the wake of COVID-19.
Movie Theater and Restaurant Chain Wins Impressive Legal Victory
Initially, Boffo Cinemas LLC asked the Fireman’s Fund Insurance Company for $30,000,000 to cover their losses during the COVID-19 pandemic. The California court initially dismissed the complaint and did not allow it to be amended. Fortunately for the chain, Sharon Yuen entered the picture, and her landmark decision will be felt throughout the business world.
Fireman’s Fund Insurance Company, a branch of the Allianz insurance giant, faces serious consequences after the California Court of Appeals agreed with the Callahan & Blaine lawyer. Sharon Yuen argued that Boffo Cinemas LLC was entitled to ask for $30 million in damages because of the money it lost due to the worldwide pandemic.
Sharon Yuen Led the Successful Appeal
Yuen faced an appellate panel of three judges to argue that the trial court improperly dismissed all of Boffo Cinemas LLC’s claims for coverage due to COVID-19 related losses, without consideration of all of four applicable coverage parts of the policy. The lower court had denied the chain the opportunity to amend its lawsuit, and any of its claims, against the Fireman’s Fund Insurance Company.
The California Court of Appeals unanimously decided that the lower court made a mistake and should have permitted Boffo Cinemas LLC to modify its lawsuit against the insurance company so that the company could fully argue its claims under distinct event cancellation and crisis management provisions of the policy.
Ruling Creates Major Impacts on Insurance Companies
The senior attorney managed the briefing in the court appeal. Yuen has made waves in the insurance community with this ruling since most dismissals of COVID-19 lawsuits against insurance companies have had little to no success upon the dismissal phase when appealed.
Yuen was quoted as saying, “This was a great result for the client, as the trial court was too quick to dismiss the lawsuit without considering all available coverages under the policy for COVID-19 related closures for our client.” Yuen’s handling of this especially complicated facet of insurance law convinced the appellate panel to overturn the original decision.
Reach out Today for all of Your Business Litigation Needs
Senior trial attorney, Sharon Yuen, is a trailblazer in complex business litigation. She expertly handled this case and others involving complicated business and insurance law. Attorney Yuen is sought after for her experience and track record of success.
If you need an experienced business litigator, reach out today to discuss what Sharon Yuen and the talented legal team at Callahan & Blaine can do for you. Our legal team is up to the most complicated challenge, as evidenced by the results we deliver time after time.
