• Still Gasping! The Supremes Set Another Limit on Katrina’s Bad Faith
  • February 1, 2013
  • Law Firm: Porteous Hainkel Johnson L.L.P. - New Orleans Office
  • In Katrina’s last gasp, we reported on the continuing trend narrowing insurers’ flexibility in matters of statutory bad faith. In the First Circuit opinion, Allstate’s failure to tender payment in a form acceptable to the plaintiff within 30 days of a mediated settlement was judged in bad faith under Louisiana Revised Statute 22:1973. The Supreme Court took another look.

    In its opinion, 2012-CA-2181 (La. 12/14/12), the Court reviewed the payment history from another perspective and appears to conclude that the claimant’s (Instant Replay Sports, Inc.) post mediation conduct delayed or tolled the running of Allstate’s 30 day deadline. The First Circuit was reversed and trial court opinion reinstated.

    Louisiana’s Supreme Court has been a fair arbiter between competing interests in the long saga of Katrina bad faith. No question, the Court’s standards have been strict from insurer persepctives (see, for example, Oubre v. Louisiana Citizens Fair Plan, but the Court has also pulled back in a couple of important cases where doing nothing might have been the easier course. See Durio v. Horace Mann Ins. Co., in additon to the instant opinion.