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Headline Catastrophic Loss Legal News from LexisNexis®

• Judge Grants Insureds' Request To Dismiss Extracontractual Claims
  JACKSON, Miss. - A federal judge on Sept. 8 dismissed portions of an insured couple's lawsuit alleging that their insurer acted in bad faith in refusing to pay for some of the property damages incurred to their home as a result of Hurricane Katrina (Thomas C. and Pamela McIntosh v. State Farm Fire and Casualty Co., et al., No. 06-1080, S.D. Miss.; See June 2008, Page 14). Full story on lexis.com
• Insurer's Policy Excludes Coverage For Mold Even If Caused By Windstorm
  NEW ORLEANS - An insured is not entitled to coverage for mold damages even if the mold was caused by a windstorm during Hurricane Katrina's landfall because the policy at issue clearly excludes coverage for this loss, a federal judge said Aug. 29 (Ace American Insurance Co. v. Administrators of the Tulane Educational Fund, No. 07-3749, E.D. La.; 2008 U.S. Dist. LEXIS 66299). Full story on lexis.com
• Issues Of Fact Preclude Judgment On Coverage For Period Of Restoration
  NEW ORLEANS - Although coverage under the business income section of an insurance policy does not apply after an insured's operations resume, issues of fact exist as to the cause of the suspension of operations before the insured resumed its business operations after Hurricane Katrina, a federal judge said Aug. 19 (Courtenay, Hunter & Fontana, LLP v. Massachusetts Bay Insurance Co., No. 07-976, E.D. La.; 2008 U.S. Dist. LEXIS 63650). Full story on lexis.com
• Louisiana High Court Refuses To Review Rental Income Reimbursement Suit
  NEW ORLEANS - The Louisiana Supreme Court on July 15 denied an insurer's writ application for appeal regarding whether it should be entitled to reimbursement or credit for rental income collected by its insured as a result of renting out its parking lot to the Federal Emergency Management Agency (FEMA) after Hurricane Katrina (Chalmette Retail Center L.L.C., v. Lafayette Insurance Co., et al., No. 2008-1550, La. Sup.; 2008 La. LEXIS 1546; See February 2008, Page 6). Full story on lexis.com
• Insurance Agents Cannot Acts As Insurer's Agent Under NFIP, Judge Says
  NEW ORLEANS - A write-your-own (WYO) carrier under the National Flood Insurance Program (NFIP) cannot be sued for damages incurred for an agent's failure to issue a flood insurance policy because under the NFIP, agents act for the insured and not the insurer servicing agent, a federal judge said Aug. 12 (Regina L. Demouy et al., v. Allstate Insurance Co. et al., No. 06-9629, E.D. La.; 2008 U.S. Dist. LEXIS 62438). Full story on lexis.com
• Insureds Relied On Agent's Recalculation Of Premium Payment, Judge Rules
  NEW ORLEANS - Finding that an insurance agency's agents induced insureds to rely on them to recalculate a premium payment and that the insureds contacted the agency to seek resolution of the premium dispute with an insurer before Hurricane Katrina made landfall, a Louisiana federal judge on Aug. 19 denied the agency's motion for summary judgment on breach of fiduciary duty claims (In re: Katrina Canal Breaches Consolidated Litigation, No. 05-4182, E.D. La.; 2008 U.S. Dist. LEXIS 63070). Full story on lexis.com
• Claim Against Agency For Failure To Procure Fails, Judge Concludes
  HATTIESBURG, Miss. - Policyholders' claim against an insurance agency for negligent failure to procure additional business interruption coverage fails because they establish no misrepresentations by the agency, a Mississippi federal judge ruled Aug. 14 (Erin Snyder and Christopher Puckett v. The Travelers Indemnity Company of America and Southgroup Insurance and Financial Services LLC, No. 07-00296, S.D. Miss.; 2008 U.S. Dist. LEXIS 62792). Full story on lexis.com
• Insured May Have Stated Valid Negligence Claim Against Agent, Judge Says
  GULFPORT, Miss. - Because a broad interpretation of the scope of an insurance agent's duty of reasonable care must be applied and issues of disputed fact exist regarding an insured's negligence claim against his agent, the suit must be remanded to state court, a federal judge said Aug. 6 (Alan J. Bush v. Nationwide Mutual Fire Insurance Co., John J. Fletcher, et al., No. 08-0038, S.D. Miss.; 2008 U.S. Dist. LEXIS 61039). Full story on lexis.com
• Insurance Broker Did Not Breach Fiduciary Duty, Judge Rules
  NEW ORLEANS - A school board knowingly underinsured its property, which was damaged by Hurricane Katrina, and did not rely on an insurance broker to make that coverage decision, a Louisiana federal judge found July 24, granting the broker's motion for summary judgment on a breach of fiduciary duty claim (Plaquemines Parish School Board v. Arthur J. Gallagher Risk Management Services Inc., et al., No. 06-7663, E.D. La.; 2008 U.S. Dist. LEXIS 56550). Full story on lexis.com