Research Guide: Insurance Litigation in Louisiana in the Aftermath of Hurricanes Katrina and Rita

INTRODUCTION

In the aftermath of Hurricanes Katrina and Rita, the state of Louisiana enacted legislation designed to help with the relief and rebuilding processes.  This research guide will serve as a guide to these laws, focusing on the laws and litigation surrounding the insurance industry.  This guide was prompted by a recent decision of the Louisiana Supreme Court to uphold two state laws (Acts 739 & 802) enacted to give insurance policyholders more time to either file claims or sue their insurance companies.  This research guide will be updated as the decision is appealed.

CASE LAW

State of Louisiana v. All Property And Casualty Insurance Carriers Authorized And Licensed To Do Business In The State Of Louisiana
http://www.lasc.org/opinions/2006/06CD2030.pdf

Defendants challenged the constitutionality of Acts 739 and 802 on both Supremacy Clause and Contract Clause grounds. The Supremacy Clause establishes the U.S. Constitution, federal laws, and treaties as supreme. Thus, state judges are bound to uphold them, even when they conflict with a state's Constitution or laws. The Contract Clause prohibits states from interfering with the obligation of contracts by providing private relief to its citizens. The Louisiana Supreme Court upheld the constitutionality of both acts on August 25, 2006.

Supremacy Clause issue: Act 802 refers to “flood insurance” claims, and the National Flood Insurance Program is administered by the federal government.  Is Act 802 a preemption of federal law?

Contract Clause issue:  Does the possibility of alterations to the contractual provisions between insurance companies and policyholders violate the Contract Clause?  The Louisiana Supreme Court analyzed this issue using the four-part test in Energy Reserves Group, Inc. v. Kansas Power & Light Co., 459 U.S. 400 (1983).

Note:  Under Louisiana’s civil law, the term “prescriptive period” is used instead of the term “statute of limitations.” 

STATUTORY AUTHORITY: ACTS 739 & 802

The recent decision of the Louisiana Supreme Court, State of Louisiana v. All Property And Casualty Insurance Carriers Authorized And Licensed To Do Business In The State Of Louisiana, upheld the constitutionality of following acts:

Louisiana Act 739 (HB 1289)

http://www.legis.state.la.us/billdata/streamdocument.asp?did=406265#search=%22louisiana%20act%20739%22

This act extends the time for filing certain insurance claims arising from hurricane activity.

Louisiana Act 802 (HB 1302)

http://www.legis.state.la.us/billdata/streamdocument.asp?did=406352#search=%22louisiana%20act%20802%22

This act provides for the interruption of the prescription period for property damage claims arising from hurricane activity.

For all text, history, amendments, digests, and votes on HB 1289 and HB 1302, go to:

http://www.legis.state.la.us and click “2006 Regular Session.”  You can search by bill number.

STATUTORY AUTHORITY: EXTRAORDINARY SESSIONS

Additionally, Louisiana held Extraordinary Sessions in both 2005 and 2006.  In each session, many bills on the topic of insurance were passed, including bills covering flood insurance, homeowner’s insurance, and property insurance.  This guide links to the Subject Index to Bills for each session.

• Louisiana Legislature – 2005 1st Extraordinary Session: Subject Index to Bills
  http://www.legis.state.la.us/billindex/051esbillindex.pdf
• Louisiana Legislature –2006 1st Extraordinary Session: Subject Index to Bills
  http://www.legis.state.la.us/billindex/061esbillindex.pdf

HURRICANE KATRINA-SPECIFIC RESOURCES

• Disaster and the Law: Katrina and Beyond (UC Berkeley) [http://128.32.29.133/disasters.php]
  "The page on this site contain information gathered from a variety of sources on a multitude of topics discussing the law's response to natural disasters."
  
• Katrina Index: Tracking Variables of Post-Katrina Reconstruction (Brookings Institute) [http://www.brookings.edu/metro/pubs/200601_KatrinaIndex.pdf] (last updated February 2006)
  "The information is designed to serve as an independent, fact-based, resource for leaders to monitor and evaluate rebuilding efforts."
  
• Rebuilding After Katrina (Smart Growth America) [http://www.smartgrowthamerica.org/katrina.html]
  The site compiles works on Katrina by the Smart Growth America coalition members as well as related articles and commentary from newspapers.
  
• Hurricane Katrina Resources (Alliance for Nonprofit Management) [http://www.allianceonline.org/katrina.page]
  
• Hurricane Katrina/Rita Information (Federal Bureau of Investigation) [http://www.fbi.gov/katrina.htm]
  
• Katrina Information Network [http://www.katrinaaction.org] is "an information and action clearinghouse. KIN shares expert viewpoints and action from the communities that have been devastated by Katrina, with up-to-minute news and analysis."
  
• Understanding Katrina: Perspectives from the Social Sciences (Social Science Research Council) [http://understandingkatrina.ssrc.org/], especially Paul Frymer, Dara Z. Strolovitch and Dorian T. Warren's Katrina's Political Roots and Divisions: Race, Class, and Federalism in American Politics" [http://understandingkatrina.ssrc.org/FrymerStrolovitchWarren/]
  
• An Unnatural Disaster: A Critical Resource Guide for Addressing the Aftermath of Hurricane Katrina in the Classroom (New York Collective of Radical Educators, Revised December 2, 2005) [http://www.nycore.org/PDF/AnUnnaturalDisaster2PDF.pdf] A collection of articles from newspapers and magazines organized by topic.
  
• Hurricane Katrina: Rebuilding the Gulf Coast Region (White House) [http://www.whitehouse.gov/infocus/hurricane/]
  
• Hurricane Katrina: What Government is Doing (Homeland Security) [http://www.dhs.gov/interweb/assetlibrary/katrina.htm]
  Overview of what government agencies are doing.
  
• Hurricane Katrina Information (FEMA) [http://www.fema.gov/press/2005/resources_katrina.shtm]
  It is mainly a site for people affected by Hurricane Katrina to obtain assistance, but it also includes links to useful resources such as the State and Local Government Resources - providing "information on the various mitigation programs available to state and local jurisdictions to protect people and reduce property and economic losses."
  
• Hurricane Katrina Disaster (Jurist Legal News & Research) [http://jurist.law.pitt.edu/currentawareness/katrinadisaster.php]
  The site archives legal news related to the Hurricane Katrina Disaster with links to related Web sites, documents and commentary.
  
• Katrina Watch (The Center for Public Integrity) [http://www.publicintegrity.org/katrina/]
  "The Center for Public Integrity spotlights the best coverage of Hurricane Katrina's aftermath and tracks government contracts awarded for cleanup and reconstruction. This is a daily roundup of links to the latest information culled from media and government Web sites." Also browsable by topic.
  
• Here is a selective list of reports by think tanks and interest groups:
  • New Orleans after the Storm: Lessons from the Past, a Plan for the Future (Brookings Institute, October 2005) [http://www.brookings.edu/metro/pubs/20051012_NewOrleans.pdf]
    
  • Essential Facts about the Victims of Hurricane Katrina (Center on Budget and Policy Priorities, September 19, 2005) [http://www.cbpp.org/9-19-05pov.pdf]
    
  • New Tax Cuts Primarily Benefiting Millionaires Slated to Take Effect in January: Should They be Implemented While Katrina Costs Mount? (Center on Budget and Policy Priorities, September 19, 2005) [http://www.cbpp.org/9-19-05tax.pdf]
    
  • Hurricane Katrina - Congressional Research Service Reports [http://fpc.state.gov/fpc/c15783.htm

OTHER RESOURCES

Links to Analysis/Opinion of Hurricane Katrina Litigation

• Appellate Law & Practice blog post of August 26, 2006.
• Louisiana Law Blog post of August 29, 2006.
• Insurance Journal article of August 27, 2006.

White Papers on Insurance Issues

• http://www.legis.state.la.us/ (click 2005 1st Extraordinary Session and scroll to the bottom of the page to click Hurricane Information.)
  • These white papers were written by the staff of the Louisiana Legislature for homeowners, renters, and business owners.  Their goal is to help these groups understand their rights and responsibilities regarding insurance issues.

Georgetown Law Library’s Insurance Quick Guide

• http://www.ll.georgetown.edu/find/resource_display_subject.cfm?topic_id=317
  • This Quick Guide provides a general framework for those wishing to research insurance issues in general.

Georgetown Law Library’s Louisiana Research Resources

• http://www.ll.georgetown.edu/states/louisiana.cfm
  • This Research Guide lists the major sources of law in Louisiana for further research.

 

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