Hospitality & Tourism  March 3, 2016

Insurance company asks judge to toss Boulderado lawsuit

BOULDER – Attorneys for Travelers Indemnity Co. on Wednesday filed a motion to dismiss a lingering lawsuit filed by the owner of the Hotel Boulderado claiming the insurance company failed to provide adequate insurance coverage for hail damage to the hotel during a storm in May 2011.

Concept Restaurants is suing Travelers Indemnity Co. and several of its insurance carriers. The lawsuit was moved from Boulder District Court to Colorado District Court last month, according to court documents filed Feb. 24.

Concept Restaurants contends the insurance company is failing to pay for the full extent of losses from the damage to the hotel at 2115 13th St. in Boulder. Concept Restaurants in court documents said the insurance policy was paid up at the time of the storm and that the insurance company has “delayed or denied payment.”

Concept Restaurants is seeking judgement against the defendants for two times the amount of any covered benefits and an award of all interest and costs of the lawsuit, because of the delay that has caused “emotional and psychological stress,” according to court documents.

In the motion filed Wednesday, attorney Brian E. Devilling of Foran Glennon Palandech Ponzi & Rudolph PC in Chicago, stated that Concept Restaurant’s complaint used a “shotgun approach” in naming seven defendants, that some were incorrectly named and one does not exist, adding that the complaint “failed to apprise defendants of the basis of allegations against any particular defendant.”

In December 2011, Concept Restaurants received a repair estimate of $414,189 for the hail damage, and in January 2012, the insurance company estimated the damage at $187,727. Concept Restaurants later received another estimate of

$223,323 from another construction company, according to court documents.

Subsequently, two appraisers, one hired by Concept Restaurants and one hired by the defendants, appraised the damage at $289,253. It is not clear in court documents if that amount was paid, and attorneys for neither side returned calls seeking clarification.

It was later determined, according to Concept Restaurants’ complaint, that additional costs for items required by the city of Boulder and Boulder County were not included in the appraisal and needed to be added. In April 2014, the insurance company notified Concept Restaurants that it had “completed their review of the additional information and determined that no further payment was due,” according to the complaint.

BOULDER – Attorneys for Travelers Indemnity Co. on Wednesday filed a motion to dismiss a lingering lawsuit filed by the owner of the Hotel Boulderado claiming the insurance company failed to provide adequate insurance coverage for hail damage to the hotel during a storm in May 2011.

Concept Restaurants is suing Travelers Indemnity Co. and several of its insurance carriers. The lawsuit was moved from Boulder District Court to Colorado District Court last month, according to court documents filed Feb. 24.

Concept Restaurants contends the insurance company is failing to pay for the full extent of losses from the damage to the…

Related Content