Greenwich Insurance v. Mississippi Windstorm Underwriting Ass'n
808 F.3d 652
5th Cir.2015Background
- MWUA was created to provide an adequate windstorm/ hail insurance market in six Mississippi coastal counties.
- MWUA requires insurance companies offering wind/hail coverage to be members; member premiums fund assessments.
- Katrina caused MWUA to incur large losses; reassessments were based on 2003 premiums.
- Greenwich Insurance, a MWUA member, also sells MPCI; MPCI is federally reinsured via FCIC.
- MWUA conducted a true-up to correct 2003 premium data after complaints of faulty reporting.
- Greenwich misrepresented MPCI data, prompting a $4.1 million assessment and Greenwich’s late challenge to the true-up deadline.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether FCIC preemption clause precludes MWUA deadlines. | Greenwich argues FCIC regulation preempts. | MWUA argues no preemption; deadlines are internal. | FCIC did not preempt MWUA deadlines. |
| Whether FCIC intended broad preemption of MWUA authority. | Greenwich contends FCIC intended broad preemption. | MWUA argues only limited preemption; presumption against preemption. | Not preemptive in scope; presumption against preemption applies. |
| Whether true-up deadline directly/indirectly affects MPCI premiums. | Greenwich contends deadline affects MPCI premiums. | MWUA asserts deadline did not trigger MPCI-based assessments. | Deadline did not affect MPCI; dispute centers on private actions. |
Key Cases Cited
- Chamber of Commerce of the United States v. Whiting, 563 U.S. 582 (2011) (textual express preemption and plain wording as core evidence of preemption)
- CSX Transp., Inc. v. Easterwood, 507 U.S. 658 (1993) (preemption analysis framework for federal regulations)
- AT&T Corp. v. Pub. Util. Comm’n of Texas, 373 F.3d 641 (5th Cir. 2004) (burden of persuasion in preemption on party seeking annulment)
- First Gibraltar Bank, FSB v. Morales, 42 F.3d 895 (5th Cir. 1995) (intent and scope of agency preemption)
- Moore, 867 F.2d 244 (5th Cir. 1989) (preemption scope considerations in regulatory contexts)
- Rio Grande Underwriters, Inc. v. Pitts Farms, Inc., 276 F.3d 683 (5th Cir. 2001) (uncertainty of preemption clause interpretation in crop insurance)
- Alliance Ins. Co. v. Wilson, 384 F.3d 547 (8th Cir. 2004) (FCIA preemption not to preempt all state-based crop insurance regulation)
- New Orleans & Gulf Coast Ry. Co. v. Barrois, 533 F.3d 321 (5th Cir. 2008) (private acts vs. regulatory operation under state law)