Louisiana’s highest court has reinstated a nearly $100 million judgment against the state’s property insurer of last resort in a class action lawsuit stemming from Hurricane Katrina in 2005.
The Louisiana Supreme Court on Dec. 16 issued a judgment that reinstated the $92,685,000 judgment, plus an estimated $11,007,046 in interest against Louisiana Citizens Property Insurance Corp. in Oubre vs. Louisiana Citizens.
The lawsuit’s main issues concern delayed adjustment of homeowners insurance claims after Hurricane Katrina, breach of faith and a $5,000 penalty for each compensable claim.
In a 4-3 ruling, the Supreme Court justices found that a lower court had ruled correctly in 2009 in finding that Louisiana Citizens had failed to begin adjusting more than 18,000 claims in a timely fashion after Hurricane Katrina. Louisiana statutes allow for a 30-day adjustment period.
The lawsuit was filed in November 2005 by plaintiffs Geraldine Oubre and Linda Gentry “on their behalf as well as others similarly situated,” according to the Court’s written opinion. It was later ruled a class action.
Writing the majority opinion, Justice Knoll described the two main issues: Whether an insurer is subject to penalties for the untimely initiation of loss adjustment in the absence of a showing of bad faith
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