Plaintiffs thought their agent, Scott Management Team, had secured flood insurance under their Allstate policy. See Demouy v. Allstate Ins. Co., No. 06-9629, 2009 U.S. Dist. LEXIS 66254 (E.D. La., July 20, 2009). After Hurricane Katrina struck plaintiffs' home, Allstate denied coverage because plaintiffs did not have a flood insurance policy.
Plaintiffs sued Allstate and Scott, alleging Scott breached its fiduciary duty by failing to inform or advise plaintiffs that they were not covered for flood. Scott moved to dismiss, arguing the suit was untimely because it was not filed within one year after the date of discovery "of the alleged act, omission or neglect" by the insurance agent, as required by statute. Without supporting evidence, Scott maintained that the limitations period began to run when plaintiff first attempted to make a claim shortly after Hurricane Katrina hit.
Scott's motion was denied without prejudice. Nothing in the record showed plaintiffs had constructive or actual knowledge of the agent's alleged act or omission. Construing the facts in favor of plaintiffs, it was possible that plaintiffs could still come within the statute of limitations period.
