Insurers Can't Beat La. Hotel Subcontractors' $2M Claims

By Alyssa Aquino (June 3, 2019, 7:12 PM EDT) -- Two insurers lost their bid to dismiss suits in Louisiana federal court accusing them of wrongfully denying $2.1 million in claims after water damage set back a project to rehabilitate a downtown New Orleans hotel.

Judge Jane Triche Milazzo on Friday refuted the insurers' arguments that electrical and plumbing subcontractors for The Jung Hotel renovation were not covered by an insurance policy issued to the general contractor, McDonnel Group LLC, and denied motions to toss their allegations from a coverage suit.

The decision came down to whether the initial contract between hotel owner Jung LLC and McDonnel required any subcontractors to be...

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