Plaintiffs in Louisiana Citizens Property Insurance Suit to Seize Cash
Mar 8, 2012
The following article was published in The Insurance Journal on March 8, 2012:
Plaintiffs in Louisiana Citizens Insurance Suit to Seize Cash
The plaintiffs who won a $92.8 million judgment against Louisiana Citizens Property Insurance Corp. three years ago plan to seize the company’s cash as a result of a ruling late on March 6 in a Jefferson Parish state district court.
The Advocate reports the state-backed Citizens and its banker, Regions Bank, had attempted to delay the seizure, arguing that the plaintiffs should have filed that request in Baton Rouge. The judge ruled that the seizure was done properly.
The ruling gives the bank 10 days to let plaintiff attorneys how much of Citizens’ money the bank is holding, the Advocate reported.
Plaintiff attorneys said Citizens’ policyholders would move ahead with the seizure.
Citizens in February offered to settle the dispute for $103 million, an offer that included a $25 million cap on attorneys’ fees. It was rejected by the plaintiff attorneys.
The lawsuit was filed following hurricanes Katrina and Rita in 2005. Citizens’ policyholders claimed the company did not begin to adjust claims within the 30 days required by state law.
Citizens has said it may appeal the case to the U.S. Supreme Court.
Find this article here: http://www.insurancejournal.com/news/southcentral/2012/03/08/238710.htm