According to court records, Cascade Living Group and Cascade Living Group Management (collectively called Cascade) “suffered direct physical loss of or damage to their covered property” due to the COVID-19 pandemic. The lawsuit alleges that Continental Casualty Co. breached the terms of its agreement by denying Cascade’s coverage.
The Washington-based independent living, assisted living and memory care provider said it had to intermittently close locations during the pandemic. Communities were required to quarantine areas, close common areas and add new cleaning procedures. Further, the company said that it incurred losses by having to pay higher wages to staff members and purchase personal protective equipment for staff members and residents.
Cascade alleged in the complaint that Continental failed to “reasonably investigate its coverage responsibility” and did not consider Washington state law when denying its claim.
Continental Casualty successfully requested that the case be moved to Washington Western District Court from a county court because the provider operates in multiple states.
Tom Stanley, co-CEO of Cascade Living, said the company does not comment on pending litigation. The defendant’s attorney also declined to comment on the case.