November 30, 2006

Posted to the AEI Liability Project Documents in the News page: Judge Duval's opinion in the federal Louisiana Katrina litigation, holding that language in insurance contracts stating that the policy does not cover "loss caused directly or indirectly by water damage" doesn't necessarily mean as a matter of Louisiana law that the insurers aren't liable for loss caused by water damage because the flood of New Orleans might not necessarily be a "flood" because of the insurance contract's failure to explicitly define that term to include manmade events, and the plaintiffs might be able to prove that the flood was manmade, rather than natural. Are you appalled yet? Earlier Katrina coverage.