Plaintiff’s Firms, Insurers Oppose Multidistrict Litigation For Business Interruption Lawsuits

The insurance industry rose up in unison in briefs last week urging the Judicial Panel on Multidistrict Litigation not to consolidate more than 100 federal-court suits by companies contending they were wrongfully denied insurance coverage for lost business related to COVID-19 closures.

Insurers filed more than two dozen briefs opposing an MDL, most joining or echoing arguments in a brief by two Chubb affiliates that said consolidation would complicate and prolong the litigation.

But insurers were not alone in their opposition to an MDL for business interruption insurance suits.

At least 10 briefs were filed by plaintiffs or groups of plaintiffs who don’t want their cases transferred to a nationwide, multidefendant proceeding.

And some of those briefs were filed by well-known plaintiffs’ firms with MDL leadership experience: Podhurst Orseck, Whatley Kallas and McKool Smith.

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