Lieff Cabraser Heimann & Bernstein, LLP, the Law Office of Alexandra Foote, and Stoll Berne announced the filing of a nationwide federal class action breach of contract lawsuit in the U.S. District Court for the District of Oregon against Berkley North Pacific Group, Berkley Insurance Company, W.R. Berkley Corporation, and Continental Western Insurance Company. The action is filed on behalf of James Beard award-winning chef Naomi Pomeroy’s celebrated restaurant Beast and all similarly-situated restaurants with business interruption insurance from the defendant insurers. The complaint alleges that after Pomeroy’s Beast restaurant suffered catastrophic financial losses in the wake of government-ordered shutdowns, the restaurant’s business interruption policy claims were wrongly denied coverage by Berkley North Pacific Group and the related insurers.

“We are honored to have the opportunity to represent Naomi Pomeroy as she courageously takes action as a class representative on behalf of all other restaurants that were also wrongly denied insurance coverage despite having faithfully paid their premiums for years,” said Lieff Cabraser partner Robert Nelson, who represents the plaintiffs in the case. “This is the third lawsuit we have filed in the last two weeks on behalf of some of the country’s finest chefs, including Pim Techamuanvivit and Daniel Patterson, and we anticipate filing additional actions against other insurance companies in the very near future on behalf of chefs, independent restaurant groups, and others.”

An Oregon native, Pomeroy is celebrated in Portland for her contributions to the city’s renowned culinary culture, receiving the prestigious James Beard Award for Best Chef in the Northwest in 2014. Pomeroy is also a Food & Wine “Top 10 Best New Chef in America” alum and a “Star Chefs” Rising Star, and on the leadership team of the Independent Restaurant Coalition (IRC), a grassroots movement to secure vital protections for the nation’s independent restaurants and the millions of restaurant workers impacted by the coronavirus pandemic. In mid-March 2020, Beast was forced to shut down in anticipation of the order of the state of Oregon. The closure and the accompanying loss of income forced Pomeroy to lay off her employees.

Beast was covered as a policyholder under insurance from Berkley North Pacific Group and the other defendants which provided coverage for business interruption. Pomeroy anticipated re-hiring the staff once defendants began providing the contracted insurance coverage for Beast’s business shutdown, particularly as the restaurant’s insurance policy expressly provides coverage for “Lost Business Income” and the consequences of actions by “Civil Authority.”

Contrary to the coverage provisions in its policy with Beast, and the obligations defendants undertook in exchange for receiving years of insurance premium payments, defendants summarily denied Beast’s business interruption coverage claim. The complaint alleges that this denial was part of a premeditated strategy by defendants to deny all claims related to the “shelter in place” orders associated with COVID-19. The complaint further alleges that defendants’ decision to deny coverage was untethered to the facts of Beast’s claim, which defendants did not adequately investigate, or the specific coverage provided by Beast’s policy, and was therefore illegal.

“Pomeroy’s claim is not unique, but her restaurant certainly is, and her leadership here is a clarion call to action. Her voice is one of the strongest in the independent restaurant and sustainable food movement nationwide, and she is standing up for all chefs, asking for their courage to join her,” notes Alexandra Foote, who also represents the plaintiffs. “The loss of Beast would be tragic forever, and wholly avoidable, if only the insurance industry would simply honor the basics of its policies.”

Plaintiffs’ complaint alleges that this total denial of valid and justified business interruption claims constitutes a breach of contract, a breach of the covenant of good faith and fair dealing, and unlawful trade practices, and seeks declaratory relief including specific performance of the insurance policies as well as general, compensatory, and treble damages.

For more information, click here.

Law360 published an article, “Law Offices Win Cert. in Digital Receptionist Billing Suit,” on April 24, 2020 regarding an Oregon federal court certifying a class action in McKenzie Law Firm et al. v. Ruby Receptionists, Inc., USDC D. OR, Case No. 3:18-cv-1921-SI. To read the article, click here.

An Oregon federal court certified a class action in McKenzie Law Firm et al. v. Ruby Receptionists, Inc., USDC D. OR, Case No. 3:18-cv-1921-SI on April 24, 2020.

Class eligibility as stated by the Court includes:

“All persons or entities in the United States who obtained receptionist services from Defendant Ruby Receptionists between November 2, 2012 and May 31, 2018, pursuant to its form Service Agreements.”

The case arises from claims of Ruby Receptionists’ customers that the company misled its customers and breached its contracts by billing for time a call was on hold, and by rounding up every call resulting in overcharges.

The opinion can be read here.

Stoll Berne filed a friend of the court (amicus) brief on Monday, March 30, 2020 on behalf of Former Federal Immigration Judges and Members of the Board of Immigration Appeals in support of the plaintiffs’ request for a temporary restraining order that would pause all in-person activities of the immigration process in light of the present coronavirus crisis.

Stoll Berne Motion to Appear as Amicus Curiae

Stoll Berne Brief of Amici

Stoll Berne received Benchmark Litigation’s award for 2020 Oregon Firm of the Year. The awards ceremony took place in San Francisco on Thursday, March 5, 2020.

The award recognizes litigation firms in each state based on the significance of their representations. Stoll Berne litigation lawyers have been consistently ranked in Benchmark Litigation since 2007.

“Stoll Berne is a local law firm, with local values and a big reach. We are successful because we are a team. Our founding partners set an example that we follow today.  We have kept the spirit of the noble pursuit of justice, always doing what’s right, and fiercely fighting for our clients. We represent clients in whom we believe and respect, not as a matter of business but as a matter of conscience, and we’ve flourished as a result,” said Managing Shareholder, Keith Ketterling.

Stoll Berne attorney Keith Dubanevich presented at the March 12, 2020 Multnomah Bar Association CLE. Keith, along with John Dunbar of Dunbar Law LLC, and Beverly Pearman of the Port of Portland, discussed, “Deposing the Organization.”

For more information, click here.

A United States District Court Judge has granted final approval of a settlement in the Premera data breach lawsuit, which arose after Premera was the target of an external criminal-cyberattack that began in May 2014 and resulted in the cyberattackers having access to personal information stored on Premera’s computer network system. The settlement does not include any finding of wrongdoing, and Premera is not admitting any wrongdoing or that any individuals were harmed because of the cyberattack.

Following Premera’s announcement of the cyberattack in 2015, the consolidated class action lawsuit was filed in United States District Court for the District of Oregon before the Honorable Michael Simon. The lawsuit alleged that due to Premera’s practices, cyberattackers were able to gain access to the personal information of 10.6 million individuals, including names, dates of birth, social security numbers, and protected health information.

Under the terms of the Settlement, Premera agreed to pay $32 million to resolve the litigation. Those funds will pay for an additional two years of premium credit monitoring, and identity protection services, out-of-pocket losses, and cash payments to all class members who make a claim. The fund also will pay for administrative and notice costs related to the settlement, including attorneys’ fees.  The benefits will not be available until any appeals of the Court’s approval of the settlement have been concluded.

In addition, Premera has agreed to guarantee a minimum of $42 million in funding for its information security program over the next 3 years, and implement and/or maintain a number of specific changes to its information security practices, including:

• Encrypting certain personal information;
• Strengthening specified data security controls;
• Increased network monitoring and logging of monitored activity;
• Annual third-party security audits;
• Stronger passwords, reduced employee access to sensitive data, and enhanced email protections; and
• Moving certain data into archived databases with strict access controls.

After reviewing extensive briefing and hearing arguments of counsel, U.S. District Court Judge Simon ruled that the settlement was “fair, reasonable, and adequate” and complied with all applicable legal requirements.

Lead counsel for the Plaintiffs, Kim Stephens, said “After several years of hard-fought litigation, we are pleased that individuals affected by this data breach will receive compensation for their losses and identity theft protection going forward. The settlement also includes extensive and detailed injunctive relief in the form of substantially reformed and improved information security practices, designed to protect the class members’ information from future attacks.” “This is a great result that will provide real and meaningful relief to the class,” added Keith Dubanevich, liaison counsel for Plaintiffs.

Premera’s Executive Vice President and Chief Information Officer, Mark Gregory, said, “We are pleased to be putting this litigation behind us, and to be providing additional substantial benefits to individuals whose data was potentially accessed during the cyberattack. Premera takes the security of its data and the personal information of its customers seriously and has worked closely with state and federal regulators and their information security experts. The company recently achieved an industry-leading HITRUST certification, demonstrating its ability to identify risks, protect assets, detect attacks, and respond and restore capabilities should the need arise.”

Epiq, a global leader in the legal services industry has managed the settlement which has been overseen by the Court. The settlement administrator set up a website regarding this settlement which is the best resource for questions about the settlement, including how to register for the credit monitoring or identity protection services offered, or how to submit claims for out-of-pocket costs or alternative compensation. https://www.premerasettlement.com