Subcontractor Lacks Standing to Sue SFIP Insurer, Claim Preempted, Va. Federal Judge Rules

NORFOLK, Va. — A subcontractor lacks standing to assert a claim under the Racketeering Influenced Corrupt Organizations Act against a Write Your Own insurer because it was not proximately injured by the carrier’s reduction of sums otherwise payable under the policy, a Virginia federal judge has ruled.

In a Jan. 3 order, Judge Raymond Jackson of the U.S. District Court for the Eastern District of Virginia further held that the action is preempted by the National Flood Insurance Program, which provides the exclusive remedy for all claims arising from a WYO carrier's handling of claims under a standard flood insurance …