Louisiana Supreme Court Upholds Suit Extension but Policyholders Need Still Beware
In the following opinion, the Louisiana Supreme Court validated the legislation enacted earlier this year that allows property owners impacted by last season's hurricanes an extra year to negotiate claim settlements with their insurance companies.United Policyholders provided witnesses and support to help get the legislation through the process. This is a major victory for policyholders, but UP still urges all property owners who have been victims of unreasonable claim practices to consult with experienced counsel prior to August 29, 2006 to fully protect their rights.
Louisiana law and policies sold in that state generally require suit to be filed within a year of an event giving rise to a claim. Claimants lose virtually all negotiating leverage once the year expires because insurance companies know they can no longer be held accountable for unfair claim practices. The looming deadline put enormous pressure on property owners and policyholder advocates over the past few months. Major property loss claims are always complex and are very rarely fully and fairly calculated or settled within a year of the date of loss. Last year's hurricanes created unusual conditions that made this even more so. Although some insurers voluntarily agreed to waive suit deadlines, many did not. The Supreme Court's ruling is a major victory for policyholders and the legislative process.
Download opinion (192K pdf document)
