A men’s clothing company that lost its entire inventory in a large commercial fire in downtown Los Angeles is suing its insurer for allegedly refusing to compensate the company.
The Aug. 21, 2022 blaze combined with weather conditions led to a strong, lingering odor of smoke across the greater Los Angeles area. The fire was reported at 2:57 a.m. in the area of East 14th Street and Long Beach Avenue and was extinguished in about 80 minutes.
In the Los Angeles Superior Court lawsuit, Urban Fitz Inc. alleges Pacific Employers Insurance Co., part of the Chubb family of insurers, is liable for breach of contract and of the implied covenant of good faith and fair dealing. Urban Fitz seeks unspecified compensatory and punitive damages.
“This was a total loss that needed to be adequately addressed and paid by Chubb, but was not,” the suit alleges.
A Chubb representative did not immediately reply to a request for comment on the suit brought Tuesday.
The fire ignited at a neighboring property and the plumes of smoke, ash and contaminated fire particles quickly reached the property line and entered Urban Fitz’s property, the suit states. The business sells high-end men’s clothing, which was exposed to the strong smoke odors, according to the suit, which further states that as a result, Urban Fitz’s inventory was destroyed, causing substantial lost income.
“In violation of its obligations under the policy, Chubb … failed and refused to pay the sums due under the policy,” according to the suit, which further alleges that the policy provided coverage for $2.5 million in business personal property losses.
Urban Fitz submitted documentation to support its claim, including videos and photos taken 12 hours after the start of the fire and showing the heavy plumes of smoke that pervaded the property, the suit states.
“Chubb and its adjusting teams continued in its pattern of delay and willful ignorance of the clear damages to plaintiff’s business personal property all aimed at withholding rightful benefits related to this claim,” the suit alleges.