Construction Funding, L.L.C. v. Fidelity National Indemnity Insurance, 636 F. App'x 207

Construction Funding owned Mandeville, LA property insured under a Standard Flood Insurance Policy (SFIP) issued by Fidelity as a WYO carrier under the NFIP.
Hurricane Isaac (Aug. 2012) allegedly caused $76,218.01 in flood damage; Construction Funding submitted a claim and a timely sworn proof of loss asserting that amount.
Fidelity denied the claim as "unsubstantiated," concluding Construction Funding failed to prove damage was from Isaac rather than a prior flood and lacked supporting documentation.
Construction Funding sued Fidelity for breach of contract, breach of the duty of good faith and fair dealing, and negligent misrepresentation; district court granted summary judgment for Fidelity.
The Fifth Circuit reviewed de novo whether Construction Funding complied with SFIP requirements, noting SFIPs are strictly construed and require strict compliance with procedural prerequisites (Article VII of the SFIP).

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether plaintiff complied with SFIP proof-of-loss and documentation requirements	The submitted sworn proof of loss was timely and sufficient; any sufficiency dispute precludes summary judgment	Plaintiff failed to attach required inventory, bills, receipts, and detailed repair estimates, so it did not comply with Article VII(J)	Held for Fidelity: plaintiff failed to comply with SFIP proof-of-loss/documentation requirements; summary judgment affirmed
Whether substantial (vs. strict) compliance suffices under SFIP	Substantial compliance is adequate to pursue the claim	SFIP requires strict compliance per federal common law and SFIP terms	Held for Fidelity: strict compliance required; substantial compliance insufficient

Spong v. Fidelity Nat’l Prop. & Cas. Ins. Co., 787 F.3d 296 (5th Cir.) (describing NFIP/WYO framework and SFIP terms)
Ferraro v. Liberty Mut. Fire Ins. Co., 796 F.3d 529 (5th Cir.) (SFIP terms must be strictly construed and enforced)
Marseilles Homeowners Condo. Ass’n Inc. v. Fidelity Nat’l Ins. Co., 542 F.3d 1053 (5th Cir.) (FEMA regulations require strict compliance with SFIP; claimant must show prior compliance to sue)
Gowland v. Aetna, 143 F.3d 951 (5th Cir.) (failure to provide a complete, sworn proof of loss relieves insurer’s obligation to pay)
Spence v. Omaha Indem. Ins. Co., 996 F.2d 793 (5th Cir.) (NFIP disputes governed by federal common law)
Amerisure Mut. Ins. Co. v. Arch Specialty Ins. Co., 784 F.3d 270 (5th Cir.) (standard of review for summary judgment)
Savant v. APM Terminals, 776 F.3d 285 (5th Cir.) (definition of genuine dispute of material fact)
Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (Sup. Ct.) (summary judgment standard)