On Wednesday, Nationwide General Insurance Co. officially dropped its lawsuit seeking over $176,000 in damages from Panda Express Inc., resolving a dispute over a water leak allegedly caused by grease-filled pipes at one of the restaurant chain’s locations.

The case, filed in June, centered on an incident at the Panda Express restaurant in Bellevue Square mall near Seattle. Nationwide General claimed the leak originated from grease-clogged plumbing maintained by Panda Express, which resulted in water damage to Mecca Boutique, a clothing and footwear store insured by Nationwide and located directly below the restaurant.

In its complaint, Nationwide General alleged that Panda Express failed to properly maintain its plumbing in violation of its lease agreement with the mall. The insurer also cited a previous 2022 leak that caused damage and led the mall’s management company, Kemper Development Co., to repair a cracked cast iron pipe. This repair revealed significant grease buildup, which Nationwide General argued was the root cause of the repeated leaks.

Despite prior knowledge of the 2022 incident, the insurer claimed Panda Express did not take adequate measures to prevent further grease accumulation, resulting in a second leak in 2023 that caused additional damage. The lawsuit accused Panda Express of negligence for failing to uphold its responsibility to maintain the plumbing and prevent harm to neighboring tenants.

The legal action was initially filed in Washington state court before being removed to federal court. Both parties have now agreed to dismiss the case with prejudice, as confirmed by U.S. District Judge John C. Coughenour.

Nationwide General Insurance Co. was represented by Cameron D. Young of Cozen O’Connor, while Panda Express was represented by Edward M. Silverman and Mary W. Cullen of Williams Kastner.