A store is closed March 27, 2020, due to the COVID-19 outbreak. Photo: J. Albert Diaz/ALM

The Allegheny County Court of Common Pleas is set to handle the initial round of litigation over whether insurance carriers must provide coverage to companies that suffered an interruption of their business as a result of the COVID-19 pandemic.

On Thursday morning, Allegheny County Administrative Judge Christine Ward agreed to consolidate into the Pittsburgh-based court several lawsuits that have been filed across the state against Erie Insurance Exchange over its business interruption coverage. The four-page order said the cases will be consolidated for all pretrial and trial matters, as well as a final resolution.

The order specifically addresses three lawsuits that have been filed in recent months—one in Allegheny County, one in Philadelphia, and another in Lancaster County—but Ward's order also said Erie Insurance shall notify the court of any similar action so they can be transferred to the Allegheny County court and consolidated.

Schmidt Kramer attorney Scott Cooper, who, along with attorneys from Haggerty, Goldberg, Schleifer & Kupersmith, Goodrich & Associates, and Kohn Swift & Graf, is leading the plaintiffs' efforts, said the ruling is important because it will help expedite a decision in the matter.

"We are pleased with the court's decision to coordinate these cases in one court since this will result in efficiencies for all of the litigants and the court. Also, there is not any risk of inconsistent decisions when the courts interpret this policy," Cooper said in an emailed statement. "We look forward to moving forward with our client's case as quickly as possible to obtain the insurance coverage under their policies that they, and all businesses, paid for and need."

The first case to be filed over the business interruption dispute in Pennsylvania was Tambellini v. Erie Insurance Exchange, which was filed in Allegheny County, and is one of the three suits named in Thursday's consolidation order.

Plaintiffs raising the coverage claims have been seeking a swift resolution on the business interruption issue since Tambellini was filed in late March. By April the plaintiffs had filed a petition seeking to have the Pennsylvania Supreme Court resolve the matter using its King's Bench jurisdiction, but the justices rejected those efforts the following month.

Plaintiff Joseph Tambellini's case hinges on the single question of whether Erie Insurance must provide coverage for the business disruption he's faced after his restaurant was closed as part of Gov. Tom Wolf's order shutting down businesses across the state. The suit seeks a declaratory judgment, and specifically argues that Tambellini's policy is an "all risk" policy, which provides coverage for all losses unless specifically excluded. Since the policy does not include a virus-related exclusion, the coverage must be available, he contended.

According to Tambellini's King's Bench petition, a ruling on the issue could provide guidance to the "hundreds, if not thousands," of similar lawsuits that are expected to arise across the state over the business closures.

Erie's counsel, Tara Maczuzak of DiBella Geer McAllister Best, did not return a call for comment.