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Wakonda Club, other restaurants ask court to hold insurers liable for COVID losses


Des Moines Register: Two cases before the Iowa Supreme Court could decide whether Iowa restaurateurs are in line for millions of dollars to compensate them for business lost in the first months of the COVID-19 pandemic. Lawyers for the Wakonda Club in Des Moines claimed in oral arguments Monday that the club’s insurer should cover hundreds of thousands of dollars in income lost during a state-ordered closure in spring 2020. The court also accepted a second lawsuit by Des Moines supper club Jesse’s Embers. After Selective Insurance of America, Wakonda’s insurer, refused to cover the resulting losses, the club sued. Key to Wakonda’s argument is its position that the state proclamation, rather than the disease itself, is legally to blame for the closures.

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