STORY FROM: Superstorm Sandy Insurance Litigation

Insurer to Appeal Award of Attorney’s Fees to Policyholder in Hurricane Coverage Action

CINCINNATI — An insurer plans to appeal a North Carolina federal judge’s award of $63,962 in attorney's fees to policyholders in a hurricane coverage action after finding that the insurer acted in bad faith by refusing to pay a claim for flood-related damages under a Standard Flood Insurance Policy.

Allstate Insurance Co. filed its notice of appeal on Sept. 9 in the 6th Circuit U.S. Court of Appeals. The appeal concerns an Aug. 23 order in which the U.S. District Court for the Eastern District of North Carolina held that an award of attorney’s fees is appropriate because the insurer ...

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