Patriot Disaster Specialist L L C v. Hacker
2:22-cv-06016
W.D. La.Jul 31, 2025Background
- Patriot Disaster Specialist, LLC (“Patriot”) contracted with Shelley Hacker for water mitigation and mold remediation services after Hurricane Delta damaged Hacker’s property.
- Two contracts were signed: one for water mitigation/mold remediation and another for pack-out services. Total claimed by Patriot was over $158,000.
- Patriot filed suit against Hacker and her insurer, Allstate, for breach of contract, unjust enrichment, work/labor, and bad faith claims handling.
- Defendants (Hacker and Allstate) moved for summary judgment to dismiss all claims except unjust enrichment, arguing mainly unenforceability due to licensing issues and lack of valid assignment of insurance rights.
- The court reviewed whether the contracts were unenforceable due to Patriot’s lack of proper licensing and whether the contracts validly assigned insurance benefits or extra-contractual rights to Patriot.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Valid assignment of insurance rights | Contracts assigned insurance benefits to Patriot | No assignment language; only direct payment authorization | No valid assignment; Patriot has no standing against Allstate |
| Bad faith claim against insurer | Patriot entitled via assignment | No assignment of extra-contractual/bad-faith rights | No standing for bad faith claims; only insured can assert |
| Contracts void due to licensing | Patriot’s services did not require contractor/mold license | Patriot needed but lacked required licenses, making contracts void | Most work was water mitigation, so contracts not void |
| Interest on unpaid amounts | Contract allowed for interest on unpaid balances | No contract language for interest; claim unfounded | No language supports claim; interest claim dismissed |
Key Cases Cited
- TradeWinds Env’t Restoration, Inc. v. Stewart, 409 F. App’x 805 (5th Cir. 2011) (contracts with unlicensed contractors are absolutely null under Louisiana law)
- Quatermary Res. Investigations, LLC v. Phillips, 316 So.3d 448 (La. App. 1 Cir. 2020) (nullity of contracts with unlicensed contractors)
- Falco Lime, Inc. v. Plaquemine Contracting Co., Inc., 672 So.2d 356 (La. App. 1 Cir. 1996) (when contract language is clear, no further interpretation needed)