Federal court rules losses suffered by Patachou restaurant not covered by insurance

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16 thoughts on “Federal court rules losses suffered by Patachou restaurant not covered by insurance

    1. She was fighting for all small businesses. If she had one, we all would have been filing claims.

  1. Accurate ruling. Martha tried to exploit a coverage that no one has and go figure it didn’t work.

    After all the constant complaints that Patachou didn’t get enough bailout money and she went after the insurance for more.

    If you peel back the data, Patachou received millions in PPP loans at the same time telling the media restaurants are getting screwed over.

    1. That PPP help was used to pay and keep several hundred employees during a government-ordered shutdown, and to pay insurance, rent and utilities for numerous locations that couldn’t, by law, do business—the PPP funds did NOT to go into the business owner’s pocket.

    1. Didn’t restaurants have to spend most of their relief money on replacement wages for their employees who were not working while they were closed or on reduced operations?

  2. CPA here…. They were eligible for two rounds of PPP (and though it is public record, I’m not going to spend any time looking to see exactly how much they got). Now…. Who has heard of the Restaurant Revitalization Fund? The RRF poured HUGE amounts of extra money into their pockets about 6 months ago. In one client’s case, they received nearly 6 months’ worth of GROSS revenue in FREE money. Virtually impossible to not qualify for forgiveness down the road.

  3. I have never been to one of these restaurants, but I don’t blame anyone for doing whatever they have to do in order to keep employees employed. Although I would agree the fact dependency in this particular case didn’t seem to support the claim, you never know how it will be interpreted by a court.

    1. Agree Donald. I love her restaurants, but the facts here really didn’t support the claim, as she could have continued carry-out, delivery, etc. She chose not to…not sure why, but still feel like the right decision was made here.

  4. One should read the policy that is in force. Business interruption coverage has specific conditions, and other business owners “may” have a claim; however, if it isn’t spelled out exactly in the policy, you are fighting an uphill battle.

  5. Good, she is a fraud and would have just kept the money for herself. She only does stuff that benefits her despite putting on the “I am the champion for everyone face.”

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