Potbelly: Court Erred In Dismissing Employment Practices Liability Coverage Suit

( October 20, 2026, 4:08 PM EDT) -- SEATTLE — The owner and operator of several Potbelly Sandwich Shop restaurants appealed a Washington federal court’s dismissal of its breach of contract lawsuit seeking employment practices liability coverage for an underlying putative class action alleging that it violated the Washington Equal Pay and Opportunities Act, arguing to the Ninth Circuit U.S. Court of Appeals that the lower court erred by failing to apply the “liberal-construction principles” that govern coverage disputes under Washington law and misapplied Washington law when it analyzed the insurance policy and underlying allegations (Potbelly Corporation v. Beazley Insurance Company Inc., No. 26-2937, 9th Cir.)....