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Law360 (November 13, 2020, 4:00 PM EST) -- A Pennsylvania federal judge recused himself Friday from a suit filed by Pittsburgh's Heinz History Center against Chubb Ltd. seeking COVID-19 business loss coverage after disclosing he has personal ties with the center's board members.
U.S. District Judge Arthur J. Schwab granted Chubb's bid to disqualify him from the suit. The judge told the parties in an October hearing that he has active and close friendships with Heinz's board members who may have financial and professional interests in the outcome of this litigation.
According to the court's hearing memo, Judge Schwab "advised counsel of his relationship with so many members on the board" of the center, telling the parties they have until Nov. 11 to file a motion to disqualify him during an Oct. 28 Zoom hearing.
Chubb filed the motion on Wednesday, and Heinz said on Thursday it "takes no position on this issue."
The Historical Society of Western Pennsylvania, doing business as Senator John Heinz History Center, owns several museums and historic sites in Pittsburgh. The center sued Federal Insurance Co. in late August, seeking a declaration that its policy provides over $150,000 coverage for its business loss during the pandemic.
On Wednesday, Chubb said Judge Schwab told the parties he had invited the center's board members to his home, a board member's home was a few houses down from his, and another board member had performed surgery on him.
Judge Schwab also holds the same private club membership with the board members, and the judge himself was a "member" of the Heinz center, which requires a membership fee for individuals who want to become members, Chubb said in the motion.
"It is likely, if not certain, that as recently as 2014, the court made financial contributions to plaintiff in support of its operations," the insurer said. A federal judge must recuse themselves "in any proceeding in which his impartiality might reasonably be questioned."
In the motion, Chubb said the judge's friends hold high-ranking positions within the center. Some board members fund large-scale projects, and others conduct business with the organization in their roles as company directors, Chubb said.
The board's top priority this year is securing the center's financial stability during COVID-19, making the judge's friends having a vested financial interest in this litigation, the carrier added.
Chubb also pointed out that one of the museum center's board members, Robert N. Pierce, heads Robert Peirce & Associates, which is providing legal counsel to the center in this suit.
"The fact that a member of plaintiff's board is representing plaintiff in this matter before this court illustrates the extensive ties between plaintiff's board and this court," the carrier said.
Representatives for the parties could not be immediately reached for comment on Friday.
The center is represented by D. Aaron Rihn of Robert Peirce & Associates PC and Daniel C. Levin of Levin Sedran & Berman.
Chubb is represented by Paul D. Steinman, Eric D. Freed and Stephen S. Kempa of Cozen O'Connor.
The case is The Historical Society of Western Pennsylvania v. Federal Insurance Co., case number 2:20-cv-01286, in the U.S. District Court for the Western District of Pennsylvania.
--Editing by Janice Carter Brown.
For a reprint of this article, please contact reprints@law360.com.
