Insurance firm says Longhorn collapse not covered

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An Iowa insurance company claims it is not obligated to pay for damage at the former Longhorn Bar in Mitchell.

LeMars Insurance Company filed a lawsuit Feb. 17 against Robert Bates and Jason Bates, asking for declaratory judgment stating it is not liable to pay for damage caused when a wall at the bar, which was located at 101 N. Main St. , collapsed on Nov. 13.

According to the lawsuit, former bar owner Robert Bates filed a claim with LeMars Insurance Company but failed to mention he’d already signed over ownership of the Longhorn to his son, Jason.

Jason Bates signed a closing statement for the Longhorn Bar on Nov. 10, but the effective ownership date was Oct. 1.

LeMars alleges Jason Bates did not have insurance at the time the wall collapsed and that Robert Bates did not own the building, so LeMars is not liable to pay for damages.

The lawsuit states Robert Bates had a building and personal property coverage commercial policy through LeMars, covering Feb. 28, 2011, to Feb. 28, 2012. However, because Jason Bates supposedly did not get insurance for the building and neither of the Bates told LeMars that ownerships was transferred, LeMars claims the company is not liable for damages.

LeMars also alleges Robert Bates made a claim with the company the day after the wall collapsed, met with an adjuster to inspect the building and never said he sold the building to Jason Bates.

LeMars requests the court make a declaratory judgment stating the insurance company need not pay for the damage.

Jason Bates told The Daily Republic Thursday he will be meeting with his attorney in the future and is “unsure what actions will be taken at this time.”

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