Insurance deadline in question

January 21, 2009

As it turns out, the period to file lawsuits against insurance companies over Hurricane Katrina and Rita claims might not have expired two years after the storms.

A state appeals court opinion issued Jan. 7 says that it was legal for New Orleans homeowner Brenda Pitts to have filed a lawsuit against Louisiana Citizens Property Insurance Corp. months after the deadline for initiating litigation, because a class-action lawsuit had stopped the clock from running out.

If the unanimous decision from the Fourth Circuit Court of Appeal stands, Citizens, the state sponsored insurer of last resort, believes that the ruling will open the door for new people to file lawsuits against the company over their 2005 hurricane claims.

“We obviously don’t agree with the ruling. We will appeal it to the Supreme Court,” said John Wortman, chief executive of Citizens, which has had a goal of resolving all claims from Katrina, Rita, Gustav and Ike by the start of hurricane season June 1.

Read Article: New Orleans Times-Picayune

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