La. Court Blocks $93M Katrina Insurance Deal For Now

Law360, New York (March 16, 2012, 7:01 PM EDT) -- A Louisiana appeals court has temporarily blocked a class of Louisiana Citizens Property Insurance Corp. policyholders from obtaining $104 million in Hurricane Katrina claims from the state-chartered insurer, according to an order Wednesday.

The decision by the Court of Appeal for the Fifth Circuit halts garnishment actions by the plaintiffs, policyholders Geraldine Oubre and Linda Gentry, while Citizens challenges the judgment.

The plaintiffs sued Citizens in November 2005, claiming hurricanes Katrina and Rita damaged their property and that the insurer had violated state law by taking...
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