Ex-Owner Can't Sue For $20M Hotel Coverage, 5th Circ. Rules

Law360 (June 30, 2020, 2:21 PM EDT) -- A former owner of a Wyndham Garden hotel can't sue the establishment's insurer for $20 million in coverage for a boiler pipe explosion because the hotel was repossessed by the owner's lender and the policy went with it, the Fifth Circuit has ruled.

In a unanimous, unpublished opinion Monday, the Fifth Circuit backed a Louisiana federal court's ruling that CRU Shreveport LLC's insurance policy was transferred to its lender when it gained possession of the Wyndham Garden Hotel Shreveport through a loan default. And since CRU no longer owns the hotel, it can't sue United National Insurance Co. for $20 million...

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