New Orleans Attorney John Houghtaling Files Civil Lawsuit to Force Insurance Companies to Honor Business Interruption Claims in Wake of Viral Pandemic

NEW ORLEANS, LA. – In New Orleans Parish Civil District Court, New Orleans attorney John Houghtaling filed the state's first business interruption lawsuit seeking a court decision on whether insurer Lloyds of London is obligated to cover a French Quarter restaurant group under a viral pandemic claim.

Houghtaling's filing seeks a Declaratory Judgement asking the New Orleans Civil District Court to decide whether a civil ordinance by the Governor triggers a Lloyd's of London business income interruption policy for his client Oceana Grill and it's holding companies.  If the court finds that business interruption insurance policies should cover business shutdowns linked to the Coronavirus, this would be a landmark case that has global financial implications.

This is not the first time Houghtaling's firm has weighed in on a national crisis.  Houghtaling of Gauthier Murphy & Houghtaling, LLC, the law firm credited with leading the class action that led to the $286 billion settlement with Big Tobacco.

Said Houghtaling, "Like thousands of businesses across America, my client faithfully paid policy premiums to an insurance company for business income interruption coverage. The policy issued by Lloyds of London provides coverage for a civil authority shutdown and does not contain an exclusion for a virus pandemic. We filed this action because we have reason to believe that Lloyd's took premiums without the intention of providing the indemnity paid for.   It is our hope that Lloyd's and other similarly situated insurers will abide by their commitment to their policyholders.  The filing asks for no damages or compensation for me or my law firm, but it is my sincere hope that the precedent of this action will protect the vital lifeline relied upon by businesses across America and the families they employ"

Houghtaling is a nationally known attorney specializing in property damage and insurance. He was selected by the state's Attorney General to determine policyholder rights in the aftermath of Hurricane Katrina. Houghtaling's representation of more than 1,000 storm victims in Superstorm Sandy uncovered a national scandal in which top FEMA Executives admitted that companies forged engineering reports to deny coverage to storm victims. Houghtaling's litigation and coordination with the Attorney General of New York exposed the fraud and led to the arrest of an insurance executive, federal fines against an insurer, and hundreds of millions of dollars being recovered by storm victims. Houghtaling's insurance work was the subject of a CBS 60 Minutes special, Frontline Documentary, CBS Evening News profile, and led to the founding of a national non-profit, The American Policyholders Association.

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