Cleaning Co. Must Arbitrate $5.3M Fire Damage Insurance Suit

Law360 (February 19, 2021, 8:08 PM EST) -- A Louisiana federal judge ordered a carpet cleaning company to arbitrate its $5.3 million dispute with seven insurance companies over allegations of not being paid after cleaning up condominium buildings damaged by a 2019 fire that injured two firefighters. 

Clean Pro Carpet & Upholstery Inc. sued the insurers in May after it unsuccessfully filed for payment of its services, such as removing debris and securing the buildings. Its complaint cited breach of contract, breach of duty of good faith, negligence and bad faith claims handling.

But Chief U.S. District Judge Nannette Jolivette Brown wrote in her Thursday order partially granting and...

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