Rovezzi’s Ristorante makes $500K claim against insurance companies for losses that preceded closure

STURBRIDGE — Rovezzi’s Ristorante has a $500,000 claim against two major insurance companies on their handling of an insurance claim relating to a water pipe burst that eventually led to the restaurant being closed for good.

On or about Jan. 8, the plaintiffs, Christopher J. Rovezzi and Boyzzi Inc., both at 28 Maple St., Sturbridge, commenced a civil action against New Jersey-based Western World Insurance Company and New York-based American International Group Inc. in Worcester Superior Court.

The civil action is due to how Western World and AIG allegedly mishandled an insurance claim relating to a water pipe burst on the second floor bathroom of Rovezzi’s Ristorante, 2 School St., in the Fiskdale section of Sturbridge.

On Jan. 11, 2019, a pipe in the restaurant reportedly froze, spilling 7,200 gallons of water at a rate of 30 gallons per minute for two hours. the burst water pipe flooded 30 to 40% of the 5,000-square-foot restaurant, causing it to close down for needed repairs.

The restaurant, which seats 120 people in four dining rooms, had been in business for over 17 years when it suffered “catastrophic water damage and extensive repairs.”

In March 2019, Rovezzi’s Ristorante went on the market with an asking price of $829,000.

Western World and AIG repeatedly without any basis refused to accept liability for the resulting losses incurred from the burst water pipe and refused to pay a dime towards repairs, lost income and other policy required payments, according to a complaint filed by James P. Ehrhard, Ehrhard & Associates, P.C., of Worcester, attorney representing Boyzzi Inc. and Rovezzi.

“I’ve been a lawyer for over 21 years and the insurance company’s action in this case shocked me,” Ehrhard said Tuesday. “This business, one of the most reputable restaurant businesses in Worcester County, was shut down for no other reason than an insurance company wouldn’t meet its contractual obligation in a timely and reasonable manner.”

Ehrhard alleges that Western World and AIG’s actions were “intentional, knowing and deceptive” and the insurance companies’ failure to fulfill their contractual obligation is singularly the only reason that the restaurant closed.

Every day that Western World and AIG refused to pay their obligations under the policy was another day the restaurant was closed and shuttered, Ehrhard stated in the complaint. The shutdown caused all revenue generation to cease, Ehrhard stated.

By July 2019, the restaurant was beyond reopening and the mortgage holder on the 2 School St. property had begun the seizure process and put a for sale sign on the front of the restaurant, according to Ehrhard’s complaint.

“To this day, Western World and AIG have not paid a dime toward the business income loss and only paid property damage loss after being forced into a reference where the referees fully repudiated Western World and AIG’s position,” Ehrhard states in the complaint. “The singular and only reason that Boyzzi and Rovezzi lost their state-class renowned restaurant after 17 years was because of Western World and AIG knowingly and intentionally choosing to deny a claim that should have been paid nearly immediately.”

The plaintiffs, Boyzzi and Rovezzi, and Western World had a contract wherein Western World would insure the building, property, restaurant and income of the restaurant from damage of the type that occurred, specifically the burst water pipe in the second floor bathroom, according to Ehrhard in the complaint.

Western World and AIG refused to accept liability and pay out monies as required by the contractual obligations under the policy, according to Ehrhard’s complaint.

Rovezzi, the owner, manager and lead chef at Rovezzi’s Ristorante, is seeking damages in an amount to be determined at trial, but in excess of $500,000, plus prejudgment interest and attorney’s fees and costs, according to Ehrhard.

Western World and AIG filed a notice of removal to move the civil action from Worcester Superior Court to U.S. Federal Court. Gina M. Bonci of Burns & Farrey, P.C., in Worcester, who is currently representing the defendants, filed the notice of removal. No proceedings were conducted in Worcester Superior Court.

On March 5, Bonci — in a “Defendants’ Motion for Extension of Time to Move, Answer, Or Otherwise Respond to the Plaintiffs’ Complaint" — asked for an additional 30 days to answer or otherwise respond to the plaintiffs’ complaint. Ehrhard said the plaintiffs do not oppose this motion.

Western World and AIG have accepted liability under the policy and, separate and distinct from the civil suit itself, a “reference” tentatively scheduled for April 30 will decide how much Rovezzi should get paid, if at all, for loss of income, Ehrhard said.

This article originally appeared on Telegram & Gazette: Rovezzi’s Ristorante makes $500K claim against insurance companies for losses that preceded closure

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