Kells Irish Pub Sues Insurance Company Over COVID-19 Losses Payout

PORTLAND, OR —Kells Irish Pub is in court trying to get $2 million from its insurance company, arguing that it's owed the money to cover losses suffered during the early days of the pandemic. The suit was originally filed in Multnomah County Circuit Court but the insurance company is trying to get it moved to federal court in Portland.

Kells argues in court papers that Continental Western Group refused to pay more than $2 million in benefits that the pub said that they were owed under their policy.

In its suit, Kells said that they were forced to close on March 11, 2020 because of concerns about the spread of COVID-19.

The shutdown "could not have come at a worse time," the suit states, pointing out that it came right before St. Patrick's Day, the busiest period of the year.

Kells said that they "had purchased extra quantities of perishable food and beverage, hired extra staff, and contracted with entertainers to perform at these celebration events."

In court papers, the pub argued that even though they were closed, they still had to pay for everything

"Revenue from St. Patrick's Day events has aways played an enormous part in" keeping their business going through the year," the suit states. "The loss of most of that revenue in 2020 due to the suspension of operations was catastrophic."

Kells said that as a result of the losses, they were forced to lay off people and cancel orders.

The lawsuit states that when Kells filed a claim, the insurance company denied it without doing an investigation, a violation of Oregon law. They also argued that the company had no basis to deny the claim.

The insurance company has not yet responded beyond filing a motion to have the case moved to federal court.

In court papers, the insurance company wrote that since they are based in Iowa and not Oregon, the dispute belongs in federal court.