RailRiders ownership files suit against insurance companies

Jun. 2--Owners of the Scranton/Wilkes-Barre RailRiders are suing the Triple-A baseball team's insurance companies alleging, among other things, breach of contract for denying a claim of business interruption in the wake of the COVID-19 pandemic.

SWB Yankees, LLC filed a lawsuit recently against CNA Financial Corporation, of Chicago; the Continental Insurance Company, of Radnor; and the Continental Casualty Company, of Chicago, in the Lackawanna County Court of Common Pleas, seeking in excess of $50,000 for each of the three counts in the suit.

According to court documents, the owners claim the insurance companies failed to "honor their obligations under a commercial businessowner insurance policy" that was supposed to cover "losses incurred due to 'necessary interruption of business,' including when its business is forced to close."

"The arbitrary denial of these claims is wrong," attorney Daniel Munley said in a statement. Munley Law is representing SWB Yankees, LLC in the suit.

"People have invested in these policies to protect them when forces beyond their control force their businesses to suspend operations. They deserve the protection they paid for."

The RailRiders were scheduled to play their 51st game of the season tonight in Gwinnett, but Major League Baseball and Minor League Baseball are shut down since spring training in March because of the coronavirus pandemic. Scranton/Wilkes-Barre has lost 27 home games and was also forced to cancel the Triple-A All-Star Game, which was slated for July 15 at PNC Field, and its related events.

According to court documents, the team states the insurance companies denied the claim because, among other reasons, it did not "involve the direct physical loss of or damage to" team property, and even if it did, that it's possible other factors like "contaminants or pollutants, microbes, consequential loss and any loss during a period when business would not or could not have been conducted for any reason other than physical damage of the type insured against" could have negated coverage, too.

The team, however, points out that their coverage plan does not exclude "loss caused by a virus," and that "there exists no applicable exclusion in the policy for pandemic related losses."

Ultimately, the team is alleging three counts: declaratory judgment, breach of contract and bad faith.

When reached for comment, CNA Financial spokesperson Brandon Davis said CNA does not comment on pending litigation.

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