Katrina victims lose in appeals court

[Ban Hammer 13,346]

NEW ORLEANS - Hurricane Katrina victims whose homes and businesses were destroyed when floodwaters breached levees in the 2005 storm cannot recover money from their insurance companies for the damages, a federal appeals court ruled Thursday.

The case could affect thousands of rebuilding residents and business owners in Louisiana. Robert Hartwig, chief economist at the industry-funded Insurance Information Institute in New York, said in June that a ruling against the industry could have cost insurers $1 billion.

"This event was excluded from coverage under the plaintiffs' insurance policies, and under Louisiana law, we are bound to enforce the unambiguous terms of their insurance contracts as written," Judge Carolyn King wrote for a three-judge panel of the 5th U.S. Circuit Court of Appeals.

As a result, the panel found those who filed the suit "are not entitled to recover under their policies," she said.

More than a dozen insurance companies, including Allstate and Travelers, were defendants.

The decision overturns a ruling by U.S. District Judge Stanwood Duval Jr., who in November sided with policyholders arguing that language excluding water damage from some of their insurance policies was ambiguous.

Duval said the policies did not distinguish between floods caused by an act of God — such as excessive rainfall — and floods caused by an act of man, which would include the levee breaches following Katrina's landfall.

But the appeals panel concluded that "even if the plaintiffs can prove that the levees were negligently designed, constructed, or maintained and that the breaches were due to this negligence, the flood exclusions in the plaintiffs' policies unambiguously preclude their recovery."

"Regardless of what caused the failure of the flood-control structures that were put in place to prevent such a catastrophe, their failure resulted in a widespread flood that damaged the plaintiffs' property," and policies clearly excluded water damage caused by floods, King wrote.

This was a consolidated case, including about 40 named plaintiffs, including Xavier University, and more than a dozen insurance companies. It is just one of the cases pending in federal court over Katrina damage. The Army Corps of Engineers faces thousands of claims for damage resulting after the levees breached; King noted in her opinion that dozens more cases, some consolidated and involving property owners suing insurers, are pending in federal court in New Orleans.

Allstate spokesman Mike Siemienas said the Illinois-based company is pleased with the court's findings. Several other attorneys, on both sides of the case, did not immediately return telephone messages or declined comment.

link

[JoeMama 0]

Allstate spokesman Mike Siemienas said the Illinois-based company is pleased with the court's findings.

That quote is good enough for me to NEVER hire Allstate as my insurance carrier. So much for being in "good hands".

[Trumplestiltskin 5,791]

Allstate spokesman Mike Siemienas said the Illinois-based company is pleased with the court's findings.

Crooked bunch of bastards.

[Scott & Lai 12]

Tell me again why we buy insurance??

[Trumplestiltskin 5,791]

Tell me again why we buy insurance??

So we can think that private industry has our best interests in mind. As we grit our teeth and pay twice.

[Pinocchio Liberal 268]

It is, what it is. find the best deal you can.

[Caladan 19]

That's just crazy. You can't prove that the damage wasn't from the fact that the town didn't drain on account of the hurricane, so we're leaving you $200 for the broken windows.

[Pinocchio Liberal 268]

Well you know if you buy a house 20 feet below sea level, ###### happens! Dont expect me to come to the rescue with my taxes.

Sue? yep thats the answer! blame your decision on whatever you can.

[Caladan 19]

They bought insurance.... it's not like they were irresponsible.

[Pinocchio Liberal 268]

They bought insurance.... it's not like they were irresponsible.

It's always so nice to blame your bad decision on someone other than yourself! Well if I bought a house below sea level my first clue would be "hmmmm maybe this might be not so good"

[jundp 191]

Well you know if you buy a house 20 feet below sea level, ###### happens! Dont expect me to come to the rescue with my taxes.

Sue? yep thats the answer! blame your decision on whatever you can.

They bought insurance.... it's not like they were irresponsible.

It's always so nice to blame your bad decision on someone other than yourself! Well if I bought a house below sea level my first clue would be "hmmmm maybe this might be not so good"

I feel a TOS violation coming on here (on my part) but I'll be good. My family has been in NOLA since the early 1800s and has survived many hurricanes before this. In fact, no parts of New Orleans are 20 feet below sea level. At least half on New Orleans is at or above sea level and the average "under sea level" is about 1 to 2 feet. Some areas are 10 feet below, but not the most populated ones. The fact that the city was built in an area near or slightly below sea level has nothing at all to do with the lack of preparations the Army Corps of Engineers took (or the Governor for that matter) with the entire sitatuation. I have a feeling you don't truly know what you are talking about, have never lived any of your life in New Orleans, and probably don't even care to educate yourself on it.

As someone who had family that lost everything (not in New Orleans, ironically, but rather in Bay St. Louis, MS) and a pregnant sister who was missing in the chaos for 4 weeks....I think I may actually know a little something about it. For an insurance company THAT WAS PAID FAITHFULLY for years to deny a claim b/c of wording disputes b/n Act of God and Act of Man is nothing short of reprehensible. It's no better than the health insurance company that denies a claim for a little girl's cancer treatment.

Tell me, exactly how are your taxes paying for the reimbursement of these peoples' homes? Oh, and trust me they aren't getting millions. My sister got less than $40K on a house that was fully paid for and worth much more b/c the insurance couldn't do better. 20 years and she will be starting over. She didn't sue anyone, but I do think she got screwed, as did many people.

/rant over

[GaryC 7]

When you buy insurance you always make sure you get the correct riders to cover the things you need. The last time I bought home owners insurance I made sure that I was covered for earthquake and floods. The basic policy does not cover that. It isn't the fault of the insurance companies or the government if the home owner didn't take the time to look over the policy. It's personal responsibility people!! They shouldn't get a dime from the insurance or the government if they didn't get the correct coverage.

[Pinocchio Liberal 268]

Well you know if you buy a house 20 feet below sea level, ###### happens! Dont expect me to come to the rescue with my taxes.

Sue? yep thats the answer! blame your decision on whatever you can.

They bought insurance.... it's not like they were irresponsible.

It's always so nice to blame your bad decision on someone other than yourself! Well if I bought a house below sea level my first clue would be "hmmmm maybe this might be not so good"

I feel a TOS violation coming on here (on my part) but I'll be good. My family has been in NOLA since the early 1800s and has survived many hurricanes before this. In fact, no parts of New Orleans are 20 feet below sea level. At least half on New Orleans is at or above sea level and the average "under sea level" is about 1 to 2 feet. Some areas are 10 feet below, but not the most populated ones. The fact that the city was built in an area near or slightly below sea level has nothing at all to do with the lack of preparations the Army Corps of Engineers took (or the Governor for that matter) with the entire sitatuation. I have a feeling you don't truly know what you are talking about, have never lived any of your life in New Orleans, and probably don't even care to educate yourself on it.

As someone who had family that lost everything (not in New Orleans, ironically, but rather in Bay St. Louis, MS) and a pregnant sister who was missing in the chaos for 4 weeks....I think I may actually know a little something about it. For an insurance company THAT WAS PAID FAITHFULLY for years to deny a claim b/c of wording disputes b/n Act of God and Act of Man is nothing short of reprehensible. It's no better than the health insurance company that denies a claim for a little girl's cancer treatment.

Tell me, exactly how are your taxes paying for the reimbursement of these peoples' homes? Oh, and trust me they aren't getting millions. My sister got less than $40K on a house that was fully paid for and worth much more b/c the insurance couldn't do better. 20 years and she will be starting over. She didn't sue anyone, but I do think she got screwed, as did many people.

/rant over

Did the people that forged the trail for you have losses? I will answer it for ya (YEP) Looking for someone to blame? Move along and get on with it! quit whinin!

REIMBURSEMENTS? OMG!

[jundp 191]

Did the people that forged the trail for you have losses? I will answer it for ya (YEP) Looking for someone to blame? Move along and get on with it! quit whinin!

REIMBURSEMENTS? OMG!

I fail to see how I was whining, but I've read enough of your posts to not worry overmuch about it.

I do like how you conveniently made your comments about sea level, yet disregarded my pointing out the fallacies in your arguement.

I don't believe people should get a free ride. Indeed, as I said my family's been in NOLA for 2 centuries and none of them asked for a free ride. However, the blanket "deal with it" response of so many for this situation (and others in fact) pisses me off. God forbid you actually show compassion to anyone.

Nope, to some of you it's all about the bottom dollar. Hope that works well for you with karma.

[Pinocchio Liberal 268]

Did the people that forged the trail for you have losses? I will answer it for ya (YEP) Looking for someone to blame? Move along and get on with it! quit whinin!

REIMBURSEMENTS? OMG!

I fail to see how I was whining, but I've read enough of your posts to not worry overmuch about it.

I do like how you conveniently made your comments about sea level, yet disregarded my pointing out the fallacies in your arguement.

I don't believe people should get a free ride. Indeed, as I said my family's been in NOLA for 2 centuries and none of them asked for a free ride. However, the blanket "deal with it" response of so many for this situation (and others in fact) pisses me off. God forbid you actually show compassion to anyone.

Nope, to some of you it's all about the bottom dollar. Hope that works well for you with karma.

You must be experiencing KARMA? I am trying to get you to stand up and deal with what you were dealt. Life can be very hard,dont look for blame! It will take over your ability to deal with whats in front of you. Never depend on someone else.