USSC Declines To Hear Katrina Insurance Lawsuits
Tally up yet another victory for the insurance industry and their lobby. What is important to note is that the lawsuit argued that their policies were vague about what constituted a flood, therefore their claims should be awarded. But alas that was not the way the court saw it. Many folks have not had their claims granted cause the insurance companies said the damage was caused by a flood, and not wind, which would have been covered. Now others are being told that the vague wording of the contract should benefit the billions dollar insurance companies and not the taxpaying policy holders.
The U.S. Supreme Court declined Tuesday to hear lawsuits brought by Hurricane Katrina victims against private insurance companies, but a similar case at the state level will go before Louisiana’s highest court next week.
The federal high court turned down appeals filed by Xavier University and 68 other individuals and businesses who claimed their hazard insurance policies should have covered flooding caused by the failure of manmade levees after the storm.
The university and other plaintiffs went to the Supreme Court after the 5th U.S. Circuit Court of Appeals last summer overturned a lower court judge’s conclusion that because most of the policies’ flood exceptions were vague, they should be interpreted to favor policyholders.
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