Texas Judge Refuses to Remand Restaurant’s Coverage Action, Agent Dismissed

  • Order

DALLAS — A Texas federal judge has refused to remand a restaurant owner’s COVID-19 business interruption coverage action to state court, ruling that a Texas-based insurance agent and its employee were improperly joined as defendants, therefore diversity of citizenship exists.

In an Aug. 18 order, Judge Sidney Fitzwater ruled that plaintiff Vandelay Hospitality Group cannot recover damages in the form of insurance coverage against Baron Cass and his employer Swingle Collins Company LLC, because under Texas law, benefit of the bargain damages are not recoverable in a claim for negligent misrepresentation.

“Here, Vandelay seeks to recover ‘the amount of coverage’ …


HarrisMartin's Mass Tort Settlements Conference - Sponsored by Milestone

June 27, 2024 - Buffalo, NY
The Richardson Hotel Buffalo


HarrisMartin's MDL Conference: Video Game Addiction and the Latest Mass Tort Updates

May 29, 2024 - Salt Lake City, UT
The Grand America Hotel