Louisiana Insurance Litigation Blog

After Hurricane Ike, residents of Galveston and Bolivar Islands discovered they did not have the insurance their agent had told them they purchased. To recover, a claim must be brought against the agent.

Defense - Contributory Negligence; Failure to Examine Policy

The Texas Supreme Court in Colonial Savings Association v. Taylor addressed the law on this point. Colonial involved a suit brought by an insured against a party that was deemed to have essentially assumed the role of an agent for the insured. The court stated that while some jurisdictions have held that an insured has a legal duty to read his policy, the prevailing view--joined by this State--is as follows: "[A]n insured who accepts a policy without dissent, is presumed to know its contents, but the presumption may be overcome by proof that 'he did not know its contents when it was accepted, as by showing that when he received it he put it away without examination, or that he relied upon the knowledge of the insurer and supposed he had correctly drawn it.'

Continue reading " Hurricane Ike Claims; Galveston/Bolivar Island in particular " »

After Hurricane Ike, residents of Galeveston and Bolivar Islands discovered they did not have the insurance their agent had told them they purchased. To recover, a claim must be brought against the agent.

Causation – Negligence

In an action against an insurance agent or broker for failure to procure insurance coverage brought under a negligence theory the plaintiff must show that the defendant's negligence was the cause of a loss which the plaintiff sustained as a consequence of being without suitable coverage. The means of establishing causation may vary according to the nature of the plaintiff's breach and other circumstances of each case. In many cases, it will be necessary to show that the desired coverage was available and thus would have been obtained if the defendant had been exercising reasonable skill, care, and diligence to procure it.
Otherwise stated, an insurance agent’s or broker's failure to obtain the coverage expected by the client may not be the cause of a loss sustained due to lack of coverage if the coverage in question would not have been issued by any insurer under any relevant circumstances. Establishing causation may also require proof that the person who requested coverage had an insurable interest in the subject matter of the desired insurance. Proof that the plaintiff sustained a loss, or that some other event occurred, so that, under the terms of the policy which the defendant was to have procured, the plaintiff would have been entitled to benefits if the policy had been in effect may also be necessary.

Continue reading " Hurricane Ike Claims; Galveston/Bolivar Islands in particular " »

After Hurricane Ike, residents of Galveston and Bolivar Island discovered they did not have the insurance their agent had told them they purchased. To recover, a claim must be brought against the agent.

Failure to Procure Coverage as Requested by Client

In an action against an insurance agent or broker for failure to procure insurance coverage, the plaintiff will be able to establish the defendant's breach of duty if it can be shown that the defendant failed to procure coverage as requested by the client. Failure to procure coverage may involve a failure to obtain any policy whatsoever, obtaining a policy which does not cover a particular risk for which the client desired coverage, or obtaining a policy which did not provide a sufficient amount of coverage to fully compensate the client in the event of loss.
Generally, an insurance agent or broker will be able to discharge his or her duties to a client by procuring coverage as requested or, alternatively, by advising the client within a reasonable time that the requested coverage has not been procured. This means that the defendant may not be liable where he or she makes reasonable efforts to procure coverage as requested and fails to do so, unless the plaintiff can also show that the defendant failed to advise the client that coverage had not been procured, or failed to adequately explain the limitations or exceptions contained in any policy which was obtained.

Continue reading " Hurricane Ike Claims; Galveston/Bolivar Islands in particular " »

Thornhill Law Firm has successfully litigated claims by injured workers who engage in the offshore oil and gas industry. Movable rigs, semi-submersible rigs, drilling barges, and other floating facilities which are classified as vessels entitle claimants to relief under the Seaman’s Statutes. General maritime law and Jones Act Seaman’s Statutes created by Congress and the Federal Courts often apply to such claims. The United States Constitution gives special protection to maritime claims under the Savings to Suitors Clause of the Constitution. Maintenance and cure payments are assured injured workers under these statutes and cases. A team of lawyers has been assembled to address recent catastrophic offshore explosions, such as that we have heard reported in the news about the Trans Ocean Limited Semi-submersible Rig. The proven trial skills of Tom W. Thornhill have served well claimants who must through the courts obtain relief from responsible persons.

On April 13-16, 2010, Tom W. Thornhill participated with the other lead members of the slab committee for the multi-district litigation and class action suits against Texas Windstorm Insurance Association (“TWIA”) to depose TWIA experts on causation issues. The defense of TWIA is that the damages to the homes on Galveston and Bolivar Islands are not covered. TWIA statistically calculated damages in the amount of 11.2% of the losses without looking at the homes based on faulty science which when explored in deposition showed fingerprints of mismanagement that will expose TWIA to punitive damages for bad faith conduct. The law in Texas allows recovery under the provisions of Section 541 & 542 in the Insurance Code and the Deceptive Trade Practices Act. TWIA insurance policy holders are encouraged to take notice of the statutory time period in which to file suit. Texas allows only two years within which to file suit. Thornhill Law Firm has formed a joint venture in Texas to handle these suits named, Thornhill, Shrader & Burdette, PLLC, and can be reached at 1-800-989-2707.