5th Circuit: Policy Procurement-Related Claims Not Preempted, Insurance Claim Handling Causes of Action are Preempted

NEW ORLEANS –– The U.S. Court of Appeals for the 5th Circuit has ruled that federal law does not preempt state-law claims relating to insurance procurement in a Hurricane Ike-related insurance dispute.

In a May 22 opinion, however, the appellate court further found that claims relating to the “claims handling” after the policy was issued are, in fact, preempted. As such, the court remanded the case for a determination of a summary judgment motion in light of these conclusions.

“We recognize the difficult position in which the [plaintiffs] find themselves,” the court explained. “However, they sought to obtain a …