STORY FROM: Reinsurance & Arbitration
Reinsurer Denied Summary Judgment in $29.5 Million Business Interruption Coverage Action
January 11, 2017
NEW ORLEANS — A Louisiana federal judge has denied a reinsurer’s motion for summary judgment in an action in which a medical clinic seeks more than $29.5 million in business interruption losses it allegedly suffered following a roof collapse, finding a question of fact as to whether the insured used a flawed methodology in calculating its losses.
On Jan. 3, Judge Nannette Jolivette Brown of the U.S. District Court for the Eastern District of Louisiana further found questions of fact concerning the insured’s claim for “ramp-up” costs, which it asserts are covered under the underlying policy’s “Extended Period of Indemnity” ...