Ekhlassi v. Nat'l Lloyds Ins. Co.
295 F. Supp. 3d 750
S.D. Tex.2018Background
- May 23–25, 2015 flood damaged Ekhlassi’s home; he submitted a flood claim under a NFIP Standard Flood Insurance Policy issued by National Lloyds.
- National Lloyds' adjuster inspected and estimated $3,768.15 in covered flood-cleanup damages but found other claimed damage excluded.
- October 6, 2015 letter from National Lloyds identified itself as a denial letter, stated it would pay $3,768.25, and told Ekhlassi he had 240 days from loss to submit a sworn proof of loss.
- Ekhlassi submitted a sworn proof of loss on December 28, 2015 claiming $274,940.05.
- January 11, 2016 letter again rejected the larger proof of loss and referenced the October 6 denial letter as the basis for denial.
- Ekhlassi filed suit on January 11, 2017 against National Lloyds (and Auto Club); National Lloyds moved for summary judgment arguing the one-year limitations period began with the October 6, 2015 denial letter.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| When did the SFIP one-year limitations period begin to run? | January 11, 2016 letter gave notice of denial, so suit filed Jan 11, 2017 is timely. | October 6, 2015 letter was the written denial that triggered the one-year limitations period; suit filed Jan 11, 2017 is untimely. | The October 6, 2015 letter was a denial and triggered the one-year limitations period; suit is time-barred. |
Key Cases Cited
- Trent v. Wade, 776 F.3d 368 (5th Cir. 2015) (summary judgment standard).
- Nola Spice Designs, LLC v. Haydel Enters., Inc., 783 F.3d 527 (5th Cir. 2015) (standard for genuine dispute of material fact).
- Anderson v. Liberty Lobby, 477 U.S. 242 (1986) (summary judgment framework).
- Celotex Corp. v. Catrett, 477 U.S. 317 (1986) (movant may show absence of evidence to meet Rule 56 burden).
- Marseilles Homeowners Condo. Ass'n v. Fid. Nat'l Ins. Co., 542 F.3d 1053 (5th Cir. 2008) (SFIP conditions precedent, including sworn proof of loss, are strictly enforced).
- Qader v. FEMA, 543 F. Supp. 2d 558 (E.D. La. 2008) (discussing FEMA waivers and the effect on proof-of-loss and timing for filing suit)