[StBernard] St. Bernard Sues Insurers For $40 Million

[Westley Annis]

St. Bernard Sues Insurers For $40 Million

POSTED: 9:22 am CDT September 18, 2007
UPDATED: 9:41 am CDT September 18, 2007


CHALMETTE, La. -- St. Bernard Parish is suing two insurance companies for a
total of $40 million in unpaid damage claims from Hurricane Katrina.

Filed in U.S. Eastern District Court in New Orleans, the suits allege the
companies acted in bad faith by paying out "astoundingly low" settlements
for wind damage to parish-owned buildings.

By far the parish's largest claim is against Chicago-based Continental
Casualty Co., which paid out $885,000 for damage to 52 structures.

The parish contends the buildings, including the large government complex in
Chalmette, actually sustained $40.7 million in wind damage. The suit seeks
to force the company to pay the difference of nearly $40 million plus
attorney fees.

The other suit is against Hanover Insurance Co., which paid the parish
$165,000 for damage to six structures -- less than half what the parish
claims it is entitled to receive.

Michael Ginart, one of the attorneys representing the parish, said the
insurance companies have claimed nearly all of the damage was caused by
flooding, not wind.