142 F.4th 814
5th Cir.2025Background
- Two hurricanes in 2020 damaged a Louisiana home owned by the Sareens, who filed a claim and received payments from AIG.
- The Sareens agreed to sell the property to Navarre in May 2021, with the intent to assign their post-loss insurance rights to him.
- The closing occurred June 30, 2021, and a sale addendum referenced a future "Assignment & Power of Attorney" which was not executed at closing.
- Navarre filed suit against AIG for additional insurance proceeds in June 2022, claiming he was already the assignee.
- The formal assignment of insurance rights was executed in January 2023, after Navarre had sued and after the policy’s two-year limitations period had expired.
- The district court found Navarre lacked standing when he filed suit and granted summary judgment for AIG; Navarre appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to sue as assignee | Assignment effective as of closing by contract | No assignment until executed Jan 2023 | Navarre not assignee at time of suit |
| Effect of contract language in addenda | Addenda effect immediate assignment | Addenda only contemplated future doc | No present assignment by addenda |
| Use of parol evidence to show intent | Parol admissible to clarify intent | Clear contract bars parol evidence | Parol evidence barred by clear language |
| Timeliness of assignment and prescription | Assignment related back to closing | Prescription expired before assignment | Assignment could not cure prescription |
Key Cases Cited
- Kelly v. State Farm Fire & Cas. Co., 169 So. 3d 328 (La. 2015) (post-loss insurance rights are generally assignable under Louisiana law)
- Campbell v. Melton, 817 So. 2d 69 (La. 2002) (outlines principles of suspensive conditions in contract law)
- Prejean v. Guillory, 38 So. 3d 274 (La. 2010) (prohibits courts from disregarding unambiguous contract language in favor of supposed intent)
- TCC Contractors, Inc. v. Hosp. Serv. Dist. No. 3 of Par. of Lafourche, 52 So. 3d 1103 (La. App. 1 Cir. 2010) (assignment after suit does not retroactively cure lack of standing or prescription lapses)