East Fork Pottery, LLC, a North Carolina-based ceramic dinnerware company, filed a lawsuit against The Phoenix Insurance Company (operating as Travelers) on August 5, 2025, in the U.S. District Court for the Western District of North Carolina. The lawsuit stems from Travelers’ denial of a business interruption claim following Hurricane Helene, which struck Asheville on September 27, 2024, causing significant disruptions to East Fork’s operations.
Key Details of the Lawsuit:
- Background: East Fork, based in Buncombe County, was insured under Travelers’ Deluxe Property Insurance Policy (No. Y-630-3Y624710-PHX-24), which included coverage for business income, extra expenses, flood damage, and losses due to civil authority actions. Hurricane Helene’s winds felled thousands of trees near East Fork’s properties, and subsequent travel bans and road closures imposed by local, state, and federal authorities blocked access to their facilities, halting operations.
- Claim and Denial: East Fork promptly filed a claim with Travelers, which assigned three claim numbers (F4S3375, F4S3378, F4S3379) and sent adjuster Anthony Morris to assess the situation on October 23, 2024. Travelers issued five coverage letters between October 30 and December 27, 2024, with the final two letters denying coverage for business interruption and extra expense losses. East Fork alleges that Travelers used “carefully selected, and distorted, policy language” to justify the denial while ignoring provisions, such as the civil authority clause, that should have triggered coverage.
- Disputed Statement: East Fork claims Travelers falsely stated that Jenny Hassler, their Director of Finance, told the adjuster the business closure was due to off-premises utility damage caused by floodwaters. East Fork insists Hassler made no such statement, and this misrepresentation contributed to the denial.
- Efforts to Resolve: East Fork, along with their insurance broker, Sam Stickney, sent multiple emails challenging the denial and requesting evaluation under the civil authority provision, but Travelers allegedly ignored these. On April 28, 2025, East Fork’s counsel sent a detailed letter citing relevant legal precedents, including a North Carolina Supreme Court decision (North State Deli, LLC v. Cincinnati Ins. Co.) and a federal case involving treble damages for similar insurer conduct. Travelers reportedly did not respond to this letter or follow-up emails sent on May 22 and June 10, 2025.
- Damages Sought: East Fork is seeking approximately $1,125,000 in damages, plus interest, treble damages, and attorneys’ fees under North Carolina law, alleging breach of contract and unfair claims settlement practices.
Context and Implications:
- Hurricane Helene’s Impact: The hurricane caused significant damage in Asheville, including flooding in East Fork’s River Arts District office, though their downtown store and factory sustained less damage and resumed operations within weeks. To maintain payroll during the closure, CEO Alex Matisse used social media to sell “seconds” (slightly imperfect pottery), which sold out quickly, demonstrating community support.
- Legal Significance: The case highlights challenges in business interruption claims post-disaster, particularly around policy interpretation and insurer obligations. The outcome may hinge on the court’s reading of the policy’s business interruption, extra expense, and civil authority provisions, as well as Travelers’ claims handling practices under North Carolina law.
- Current Status: Travelers has not yet filed a response in court, and the case (1:25-cv-00246) is assigned to Chief Judge Martin Reidinger and Magistrate Judge W. Carleton Metcalf. The allegations remain unproven, and further developments will clarify Travelers’ defense.
For more details, you can access the case docket via PACER or follow updates through legal news sources like Law.com or Insurance Business America.