The insured's home was extensively damaged by wind and rain resulting from Hurricane Katrina. See Belonga v. Auto Club Family Ins. Co., No. 09-476, 2009 U.S. Dist. LEXIS 118643 (E.D. La. Dec. 21, 2009). When purchased in 2003, the home was appraised at $114,000. An adjuster addressing the insured's flood claim reported, however, the home had
First Party Insurance
Failure to File Proof of Loss Reduces Coverage Under Flood Policy
By Tred R. Eyerly on
If the insurer pays for adjusted flood damage, can the insured sue for additional coverage when no proof of loss is filed? Following its own precedent, the Fifth Circuit determined no coverage was due above the adjusted amount when the insured failed to file a proof of loss ("POL"). See Talbott v. Fidelity Nat. Ins. Co.…
Allegations of Insurers’ Fraud for Katrina Flood Claims Survive Motion to Dismiss
By Tred R. Eyerly on
In an opinion primarily concerned with the intricacies of pleading under the False Claims Act, the Louisiana federal district court addressed allegations that insurers shifted Katrina claims from homeowners' to flood policies. See United States ex rel. Branch Consultants, L.L.C. v. Allstate Ins. Co., No. 06-4091, 2009 U.S. Dist. LEXIS 101155 (E.D. La. Oct. 19…
Motion for Remand Denied in Hurricane Ike Case
By Tred R. Eyerly on
Fourteen months after Hurricane Ike hit the Gulf coastline of Texas, the initial onslaught of litigation is starting to surface in reported decisions. Our first post of undoubtedly many Hurricane Ike cases to come addresses a motion for remand after a coverage dispute was removed to federal court. See Lakewood Chiropractic Clinic v. Travelers Lloyds Ins. …
Statute of Limitations for Katrina Claim not Tolled by Insurer’s Negotiations
By Tred R. Eyerly on
In Landry Architecture, LLC v. Valley Forge Ins. Co., No. 09-3974, 2009 U.S. Dist. LEXIS 99109 (E.D. La. Oct. 23, 2009), the insured's claims for business income losses resulting from Hurricane Katrina and breach of the implied covenant of good faith and fair dealing did not survive the insurer's motion to dismiss on statute…
Settlement for Hurricane Destruction Not Upset by Insurer’s Additional Payment
By Tred R. Eyerly on
Can an insured who settles with the insurer pursuant to a mediation program later reject the settlement and seek additional coverage? The Fifth Circuit denied such relief to the insured in Wiley v. State Farm Fire and Cas. Co., No. 09-60191 (5th Cir. Oct. 9, 2009).
The insured's home was reduced to…
Dismissal of Excess Carriers Reversed
By Tred R. Eyerly on
The insured Condominium Association had primary and excess coverage. See El-Ad Residences at Miramar Condo. Assoc. v. Mt. Hawley Ins. Co., 2009 U.S. Dist. LEXIS 92216 (S.D. Fla. Sept. 24, 2009). Significant property damage was caused by Hurricane Wilma. The insured alleged that three years after the hurricane, the insurers failed to adjust…
Helicopter Crash Not Covered as “Common-Carrier Accident”
By Tred R. Eyerly on
When plaintiff's husband was killed in a helicopter accident while being transported to work in the Gulf of Mexico, the insurer paid $40,000 under the "Other Accident" provision of the accident insurance policy instead of $150,000 under the "Common-Carrier Accidents" provision. See Smith v. American Family Life Assurance Co. of Columbus, No. 08-31032…
Corban Presents Well-Reasoned Analysis of Anti-Concurrent Causation Clause
By Tred R. Eyerly on
Having now read the full Corban decision, I am impressed with the clarity of the analysis set forth in the opinion. See Corban v. United Services Automobile Assoc., 2009 Miss LEXIS 481 (Miss. Sup. Ct. Oct. 8, 2009). The Mississippi Supreme Court carefully considered the facts, offered a common sense analysis to the…
Mississippi Supreme Court Rules Anti-Concurrent Causation Clause Inapplicable
By Tred R. Eyerly on
The Biloxi Sun Herald reports here that the Mississippi Supreme Court reversed today the trial court in Corban v. United Serv. Auto., No. 2008-IA-00645-SCT (Miss. Sup. Ct. Oct. 8, 2009). We previously reviewed the Corbin case here, here and here. The unanimous decision of the Mississippi Supreme Court is here.
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