Ekhlassi v. National Lloyds Insurance Company
4:17-cv-01257
S.D. Tex.Jan 9, 2018Background
- In May 2015 floodwaters damaged Ali Ekhlassi’s home; he held a Standard Flood Insurance Policy issued by National Lloyds (a Write-Your-Own insurer under FEMA’s NFIP).
- National Lloyds’ independent adjuster inspected and initially estimated $3,768.15 in covered flood-related losses; National Lloyds sent an October 6, 2015 letter denying payment for other claimed items and stating it could not process payment without a signed sworn proof of loss (and that the claimant had 240 days to submit it).
- Ekhlassi submitted a sworn proof of loss on December 28, 2015 seeking about $274,940; National Lloyds responded on January 11, 2016 rejecting the increased claim and reiterating the October 6 denial.
- Ekhlassi sued National Lloyds (and Auto Club) on January 11, 2017 for breach of contract and statutory consumer/insurance violations under Texas law.
- National Lloyds moved for summary judgment arguing the one-year NFIP suit limitation began to run when it mailed the October 6, 2015 denial letter; the court agreed and granted summary judgment, dismissing the case with prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| When did the NFIP one-year limitations period begin to run? | Ekhlassi: January 11, 2016 letter was the effective denial, so suit filed Jan 11, 2017 is timely. | National Lloyds: October 6, 2015 letter was the denial; suit filed after one year is untimely. | Court: October 6, 2015 letter was a denial; limitations began then and suit is time-barred. |
Key Cases Cited
- Celotex Corp. v. Catrett, 477 U.S. 317 (summary judgment burden-shifting framework)
- Marseilles Homeowners Condo Ass’n v. Fid. Nat’l Ins. Co., 542 F.3d 1053 (5th Cir. 2008) (strict enforcement of SFIP conditions precedent, including proof of loss)
- Anderson v. Liberty Lobby, 477 U.S. 242 (standard for genuine dispute of material fact)
- Trent v. Wade, 776 F.3d 368 (5th Cir. 2015) (summary judgment standard application)
- Nola Spice Designs, LLC v. Haydel Enters., Inc., 783 F.3d 527 (5th Cir. 2015) (definition of genuine dispute of material fact)