4th Cir. Reverses Award to Policyholders in Flood Case, Says Lawsuit Time-Barred

BALTIMORE — A federal appeals court reversed an award of $764,157 to plaintiffs in a flood damage coverage action, finding their lawsuit against the insurer is time-barred because it was not filed in federal court within the policy’s one-year limitations period.

In an April 28 opinion, the 4th Circuit U.S. Court of Appeals further found the policyholders’ statutory bad faith claims against the insurer are preempted by the National Flood Insurance Act of 1968.

Gary and Rebecca Woodson sued Allstate Insurance Co. in the Currituck County (N.C.) Superior Court after the insurer denied their claim for flood-related damages to their …