5th Cir. Applies 'Make Whole' Doctrine to Louisiana FBI Building Case

NEW ORLEANS - The Louisiana Insurance Guaranty Association cannot use a reimbursement clause to completely avoid liability for mold damage claims unless the insured already has been 'made whole' by other payments, the Fifth Circuit U.S. Court of Appeals held on March 12. New Orleans Assets v. Woodward, et al., No. 03-30286 (5th Cir.).

In this case, the Fifth Circuit panel said, settlements between New Orleans Assets and contractors and vendors do not reach the $9 million NOA spent to eradicate mold problems at the New Orleans headquarters for the Federal Bureau of Investigation. Thus, the panel found, LIGA cannot …