In a move that wlll be closely watched by restaurants and other businesses, the iconic Musso & Frank’s Grill in Hollywood is suing its insurer for not covering pandemic losses.
Like other businesses, the restaurant closed in March because of the economic lockdown to flatten the disease curve. It was the first closure ever for Musso’s, which ironically was founded in 1918, the year the Spanish flu ravaged the world. The restaurant is one of Hollywood’s premier power lunch and dinner locations, with a long list of celebrities who have dined there.
Musso & Frank’s is suing Mitsui Sumitomo Insurance Co. USA Inc, a New York-based firm, for breach of contract and bad faith for not covering the losses.
The family run business kept its 84 employees on payroll and will face an uncertain future, as will many businesses, when the state reopens.
Musso’s has received some funding from the Small Business Administration’s Paycheck Protection Program, but the family claimed in reports it is still sustaining six-figure losses, as it has not participated in take-out or delivery orders. No employees or management contracted the COVID-19 disease.
Another iconic Los Angeles restaurant shared better news on its Facebook site.
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