1. A proposed class action has been commenced against Lombard General Insurance Company of Canada (“Lombard”) by Leo DeLuca Enterprises Inc., which operates Koolini’s Italian Eatery (“Koolini’s”) of Windsor, Ontario. The lawsuit alleges that Lombard wrongfully denied commercial insurance claims for perished stock and business interruption losses caused by the August 2003 Blackout.
2. The Blackout occurred on Thursday, August 14, 2003 just after 4:00 p.m. EST. 50 million people in Ontario, parts of Quebec and the north eastern United States were affected. Power was not restored to some parts of the affected area, including Ontario, for four days. Ontario also suffered rolling blackouts for more than one week before full power was restored. As a result of the Blackout, businesses, ranging from small mom and pop corner stores and restaurants to large chain grocery outlets, suffered losses of stock and business interruptions.
3. Koolini’s seeks to represent all persons in Ontario insured by Lombard on August 14, 2003, with extended coverage for business interruption loss and/or consequential stock loss caused by off-premises power interruption.
4. Koolini’s alleges that Lombard breached its insurance contract by refusing to pay the Blackout claims and that these decisions were made in bad faith. The action seeks damages in the amount of $50,000,000 plus punitive damages in the sum of $5,000,000.
5. For more details about the proposed class action, please review the amended amended fresh statement of claim.
6. On November 14, 2008, the court issued an order to discontinue this class action and dismiss the plaintiff's action. The plaintiff requested the order because it was no longer willing to act as a representative plaintiff for the class and face exposure for costs if it was unsuccessful.
7. If you would like to speak to someone at Sutts, Strosberg LLP about this class action, please use our toll free line 800.229.5323.
8. If you would like to know more about how a class action works, click here.
Update: December 2, 2008
IMPORTANT NOTE
This website has been developed to provide general information to potential class members on a class action that has been commenced against Lombard General Insurance Company of Canada concerning commercial insurance claims for perished stock and business interruption losses caused by the August 2003 Blackout.
The site is not designed to answer questions about your individual situation or entitlement. Do not rely upon the information provided on this website as legal advice in respect of your individual situation nor use it as a substitute for individual legal advice.
The information collected about potential class members will assist counsel in prosecuting the class action and assessing what damages were suffered by the class as a whole. Providing the information requested does not make you the client of Sutts, Strosberg LLP. The court will ultimately decide who will be included as a class member.
This website will be updated from time to time to provide potential class members with information as it becomes available.
