64 So. 3d 312
La. Ct. App.2011Background
- Plaintiffs sue Plaquemines Parish Government for flood-related damages after Hurricane Katrina and subsequent re-flooding from Rita.
- Columbia Insurance issued a claims-made-and-reported Public Officials Liability policy to PPG for 26 Feb 2006 to 26 Feb 2007, covering ministerial acts and certain wrongful acts but excluding bodily injury, personal injury, and property damage.
- Plaintiffs added Columbia as a defendant in 2009, alleging PPG negligence in hurricane protection levee maintenance caused damages to property and related losses.
- Trial court granted summary judgment for Columbia, ruling the policy does not cover the alleged damages and injuries.
- Plaintiffs appeal contending (a) some damages are covered, (b) the claims-made-and-reported provision violates public policy, and (c) summary judgment was premature.
- Appellate court agrees with the trial court that the policy excludes the asserted damages and affirms the summary judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Columbia's policy covers the Plaintiffs' damages. | Plaintiffs argue some intangible losses are covered because not expressly excluded. | Columbia argues all claimed damages are bodily injury, personal injury, or property damage excluded by the policy. | No coverage; damages are excluded. |
| Whether the policy's claims-made-and-reported provision is enforceable public-policy-wise. | Public policy invalidates the provision for third-party claims due to late reporting. | Provision is permissible; not before court on appeal. | Issue deemed not properly before the court; meritless. |
| Whether summary judgment was properly granted given discovery needs. | Additional discovery was needed to resolve coverage and enforceability issues. | Pure legal issue; discovery not required to decide coverage. | Summary judgment proper; no genuine coverage issue. |
Key Cases Cited
- Winesberry v. West Jefferson Levee Dist., 620 So.2d 385 (La.App. 5 Cir. 1993) (property damage exclusions exclude loss of resale value)
- Chicago Property Interests v. Broussard, 8 So.3d 42 (La.App. 5 Cir. 2009) (exclusionary language defeats recoveries for economic damages)
- Reynolds v. Select Properties, Ltd., 634 So.2d 1180 (La. 1994) (summary judgment and insurance-coverage interpretation principles)
- Cadwallader v. Allstate Ins. Co., 848 So.2d 577 (La. 2003) (strict construction of ambiguous policy provisions against insurer)
- Bonin v. Westport Ins. Corp., 930 So.2d 906 (La. 2006) (ambiguous terms resolved in insured's favor when reasonable)