French v. Allstate Indemnity Co.
637 F.3d 571
| 5th Cir. | 2011Background
- Plaintiffs insured their lakefront home in Slidell, LA under Allstate homeowners policy and flood coverage separately; Katrina damaged both their home and flood-damage claims.
- Plaintiffs sought wind-damage payments under the homeowners policy and flood coverage damages under the flood policy; flood claim settled and dismissed before trial, leaving wind-damage claims at issue.
- Policy provisions: Coverage A dwelling, B other structures, C contents; extended Building Structure Reimbursement Endorsement increasing dwelling coverage by 20% where applicable.
- District court found wind-damage repairs would exceed the dwelling limit, awarded $123,000 for dwelling and $10,000 for other structures, denied ALE and waived some contents and 1220 penalties; penalties under LA § 22:658 were calculated at 25% of the total due (2003 version).
- Courts addressed admissibility of Salvant’s testimony and report, whether Extended Limits Endorsement applied, ALE entitlement, § 22:1220 damages, and the correct § 22:658 penalties calculation, ultimately affirming with reductions and modifications.
- Plaintiffs appeal on evidentiary exclusion, endorsement applicability, ALE, 1220 damages, and penalties; Allstate cross-appeals arguing insufficient dwelling-damage award and penalties on entire claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Admissibility of Salvant testimony | Salvant's testimony and report were necessary for damages calculations. | LaGrange covered scope of damages; Salvant would be cumulatively duplicative. | District court did not abuse its discretion; Salvant excluded. |
| Extended Limits Endorsement applicability | Endorsement should apply since dwelling not repaired and coverage to 120% limits. | Endorsement requires repair/replacement and 100% replacement-cost coverage; not met here. | Endorsement does not apply. |
| Additional Living Expenses entitlement | ALE should be payable given uninhabitable residence during repairs. | No actual incurrence; no ALE. | ALE not awarded; may be claimable if future incurrence occurs. |
| Damages under § 22:1220 | Insurer's bad-faith handling warrants damages separate from contract. | Insurer’s conduct insufficient to prove compensable damages. | District court did not clearly err in denying § 22:1220 damages. |
| § 22:658 penalties computation and version | Penalties apply to amounts due and may use 2006 version; Grilletta dictates penalties on entire amount. | Penalties should be calculated on undisputed amount and based on 2003 version. | 2003 version applies; penalties calculated on amount found to be due minus timely paid portion; modified from $87,000 to $84,500; contents-penalties rejected. |
Key Cases Cited
- Bayle v. Allstate Ins. Co., 615 F.3d 350 (5th Cir. 2010) (policy ACV interpretation; no extra payment without repair; ACV baseline governs when unrepaired)
- Nunez v. Allstate Ins. Co., 604 F.3d 840 (5th Cir. 2010) (admissibility of expert testimony; credibility determinations in bench trial)
- Bradley v. Allstate Ins. Co., 620 F.3d 509 (5th Cir. 2010) (ACV framework; double recovery limits; burden on insured to prove ACV)
- Dickerson v. Lexington Ins. Co., 556 F.3d 290 (5th Cir. 2009) (standard for reviewing 1220 damages; de novo for law, clear-error for facts)
- Grilletta v. Lexington Ins. Co., 558 F.3d 359 (5th Cir. 2009) (penalties under 22:658 may be based on entire amount found due, including disputed portions)
- Sher v. Lafayette Ins. Co., 988 So.2d 186 (La. 2008) (penalties; amendments; applicability based on when claim arose)
- Louisiana Bag Co. v. Audubon Indem. Co., 999 So.2d 1104 (La. 2008) (undisputed portion; penalties on difference between paid and due; timely payment)