NEW ORLEANS—After New Orleans attorney John Houghtaling, whose law practice represents a number of high-profile restaurant groups, warned his celebrity chef clients that the insurance industry had decided to stonewall business interruption payouts to restaurants, they formed the Business Interruption Group (BIG) to fight back.
“(Insurance companies) are saying that they are not going to give a penny–except to defense lawyers to defend their claims," Houghtaling, managing partner at Gauthier, Houghtaling LLP, told Louisiana Record. "I find it morally wrong."
A week and a half after forming BIG, President Trump called to hear Houghtaling, and celebrity chef's Wolfgang Puck, Thomas Keller, Daniel Bouloud, Jean-Georges Vongerichten (whose restaurant is in Trump Tower in New York) out.
“President Trump agreed with us that what the insurance companies are doing is wrong,” Houghtaling said. “He was looking for ways to help. The President was extremely prepared. He understood, I guess, because of his background.”
The BIG acronym was chosen by the group to show how important the restaurant industry is to the U.S. economy. It employs 15.6 million people, making it the largest employer in the country after the government itself, and contributes $1 trillion a year to the U.S. economy.
“The entire restaurant industry is crippled and shut down," Houghtaling said. "I would guess that we have about 90 days before the restaurant industry goes down."
Puck believes the best way to stabilize the restaurant industry is to make the insurance companies pay right away.
“We cannot wait until October for something to get done," Puck told The Hollywood Reporter. "The easiest and fastest way is with the insurance companies to take the responsibility. I can’t tell you how much money I’ve paid to the insurance companies, and for them to not pay right away?”
Houghtaling decided to make a legal assault against the insurance companies. He filed a lawsuit against insurance giant Lloyds of London on behalf of The Oceana Grill in New Orleans, in Louisiana Civil District Court for the Parish of Orleans.
"I filed an action that I hope will be a precedent for the entire United States that coronavirus triggers the business interruption coverage," he said.
Houghtaling is seeking a declaratory judgment that the insurer should cover related business interruption losses. He maintains that when the New Orleans mayor prohibited dine-in business at restaurants, business interruption coverage for The Oceana Grill was triggered.
“The insurance companies are sitting on a mountain of money and business are dying,” Houghtaling said."I think they are playing chicken with the entire U.S. economy."