Judge Denies Insurers' Motion To Dismiss Katrina Suits

Law360, New York (November 28, 2006, 12:00 AM EST) -- A federal judge in New Orleans has rejected a bid by major U.S. insurers to dismiss a class action lawsuit over the companies’ insurance policies, ruling the defendants must prove why their hurricane coverage excludes the massive flooding caused by Hurricane Katrina.

The order, issued Monday by U.S. District Judge Stanwood Duval Jr., said that Louisiana law put the burden of proof on the insurers, such as Allstate Insurance Co., to demonstrate how the flooding caused by canal breaches doesn’t qualify for coverage.

Judge Duval also...
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