Katrina Flood Damage Lawsuit Gets Federal Judge's Nod to Proceed

By William Murphy

Published on November 29, 2006

Duval said in his 85-page ruling that insurers had not clearly made a distinction between flooding from natural causes and the manmade flooding that resulted from breached levees. Insurers have refused to cover flooding attributable to human error.

Duval said he felt compelled to interpret the ambiguity against the insurers because they were responsible for the language in their policies. He immediately sent his decision to the 5th U.S. Circuit Court of Appeals for review. A final decision from the court is not expected for several months

The lawsuit is a consolidation of several similar cases. The plaintiffs' attorneys praised Duval's decision as a breakthrough that will hopefully contribute to the redevelopment of New Orleans.

An insurance industry spokesman said that Duval had erred in his ruling and that his decision is unlikely to be upheld on appeal.

Duval did dismiss claims against State Farm Fire & Casualty Co. and Hartford Insurance Co. because their policies clearly specify that flooding is not covered, regardless of any cause.

Comment on this article →