When a devastating electrical fire disrupted operations at a long-established neighborhood restaurant, the business turned to its insurer expecting the protection it had paid for. Instead, the insurer denied key portions of coverage, canceled the policy during the claim process, and left the restaurant exposed to massive repair costs and cascading litigation with its landlord.
Ruiz & Smart was retained to protect the restaurant’s rights.
The fire damaged critical electrical infrastructure and forced a partial shutdown at a time when the restaurant industry was already under extreme pressure. Despite clear policy language and prompt notice of the loss, the insurer refused to pay for major categories of damage and failed to meaningfully investigate the claim. As a direct result of the denial, the restaurant was sued by its landlord and forced to defend itself without the benefit of the coverage it was owed.
Ruiz & Smart pursued a comprehensive strategy focused on enforcing the insurer’s contractual obligations and exposing systemic claims-handling failures. The firm asserted breach of contract and insurance bad-faith claims, proved violations of Washington’s claims-handling regulations, and obtained multiple court rulings confirming coverage and improper conduct by the insurer. Along the way, the insurer was sanctioned for discovery misconduct, and the court entered summary-judgment rulings establishing liability on key issues.
As the litigation progressed, the insurer was forced to pay substantial sums during the case—covering repair costs and business losses—payments that would not have occurred without sustained legal pressure. Ultimately, the matter resolved shortly before trial with a confidential settlement, in addition to the amounts the insurer had already paid during litigation as a result of Ruiz & Smart’s efforts.
For the restaurant, the result meant financial recovery, stability, and the ability to continue serving its community. For the insurer, it was a clear reckoning for denying coverage and failing to honor its obligations.
This case reflects Ruiz & Smart’s commitment to standing up for businesses when insurers place profits over promises—and to pursuing results that protect both livelihoods and long-term viability, even when the strongest outcomes must remain confidential.