Louisiana High Court Refuses to Overturn Citizens Ruling
The Louisiana Supreme Court will not reconsider a $92.7 million judgment against the state’s insurer of last resort, Citizens Property Insurance Corporation, for the company’s slow handling of Hurricane Katrina claims. But Insurance Commissioner Jim Donelon said the state-backed company will take the case to the U.S. Supreme Court and could know shortly if the issue will be considered. Donelon acknowledged that civil appeals to the U.S. Supreme Court are rarely accepted. The judgment, with interest, could cost Citizens and the state’s taxpayers around $100 million, and Donelon said there are potentially thousands of other Citizens policyholders who could be added to the judgment, driving the possible total cost up to as much as $200 million.
La. Court Overturn Katrina-related case: High Court Refuses to Overturn Citizens Ruling (Baton Rouge Advocate 1/21/12)