In re Katrina Canal Breaches Consolidated Lit.

Decision Date27 November 2006
Docket NumberCivil. Action No. 05-4182.,Civil. Action No. 06-0169.
Citation466 F.Supp.2d 729
PartiesIn re KATRINA CANAL BREACHES CONSOLIDATED LITIGATION. Pertains to Insurance Vanderbrook, C.A. No. 05-6323, Xavier University, C.A. No. 06-516, Chehardy, C.A. No. 06-1672, 06-1673, and 06-1674 and Kelly A. Humphreys v. Encompass Insurance Company, et al.
CourtU.S. District Court — Eastern District of Louisiana

Daniel E. Becnel, Jr., Law Offices of Daniel E. Becnel, Jr., Reserve, LA, Jon

Wesley Wise, Fowler Rodriguez, Gerald Edward Meunier, Gainsburgh, Benjamin, David, Meunier & Warshauer, Stephen Skelly Kreller, Stephen S. Kreller, Aplc, Justin I. Woods, Murray Law Firm, Kara M. Hadican, Gainsburgh, Benjamin, David, Meunier & Warshauer, Alfred Ambrose Sarrat, Jr., Jacobs & Sarrat, Robert. G. Harvey, Sr., Law Office of Robert G. Harvey, Sr., Aplc, Hugh Palmer Lambert, Evelyn Alexis Bevis, Linda Jane Nelson, Lambert & Nelson, Tamara Kluger Jacobson, Law Office of Tamara Kluger Jacobson, Thomas J. Corrington, The Corrington Law Firm, Randall A. Smith, Kirk Reasonover, Laura Hawkins Davis, Owen B. St. Amant, Smith & Fawer, Llp, New Orleans, LA, Jesse Lee Wimberly, III, Attorney at Law, Mandeville, LA, Robert M. Becnel, Meghan Becnel Burns, Law Offices of Robert M. Becnel, Laplace, LA, J. J. (Jerry) McKernan, Gordon J. McKernan, McKernan Law Firm, Joseph W. Hecker, Baton Rouge, LA, Calvin Clifford Fayard, Jr., Fayard & Honeycutt, Denham Springs, LA, Darin J. McMullen, John N. Ellison, Anderson Kill & Olick, Pc, Philadelphia, PA, David Scott Scalia, Joseph M. Bruno, Bruno & Bruno, Vernon P. Thomas, Attorney at Law, Ashton Robert O'Dwyer, Jr., Attorney at Law, F. Gerald Maples; J. Stuart Kirwan, Law Offices of F. Gerald Maples, P.A., Clayton Morris Connors, Mumphrey Law Firm, Llc (New Orleans), John Herr Musser, IV, Attorney at Law, Meredith Anne Mayberry, Law Offices of F. Gerald Maples, P.A., Jonathan Beauregard Andry, The Andry Law Firm, James H. Roussel, Nyka M. Scott, Baker Donelson Bearman Caldwell & Berkowitz, Pc, New Orleans, LA, Walter C. Dumas, Natashia Carter Benoit, Patti Durio Hatch, Travis J. Turner, Dumas & Associates Law Corporation, Baton Rouge, LA, J. Wayne Mumphrey, Mumphrey Law Firm, Llc, Chalmette, LA, Jim S. Hall, Jim S. Hall & Associates, Metairie, LA, Bob F. Wright, Domengeaux, Wright, Roy & Edwards, Lafayette, LA, Clay Mitchell, Levin, Papantonio, Thomas, Mitchell, Echsner & Proctor, Pa, Pensacola, FL, David Blayne Honeycutt, Fayard & Honeycutt, Denham Springs, LA, Drew A. Ranier, Ranier, Gayle & Elliot, Lie, Lake Charles, LA, James P. Roy, Domengeaux, Wright, Roy & Edwards, Lafayette, LA; John H. Smith, Mckernan Law Firm, Baton Rouge, LA, Joseph M. Bruno, Bruno & Bruno, Richard Abelard Cozad, Emma Alexandra Mekinda, Michael L. McAlpine, Mcalpine & Cozad, Michael Courtney Keller, Phyllis Esther Glazer, Stephen F. Babin, Louisiana Department of Justice, New Orleans, LA, Matthew D. Schultz, Levin, Papantonio, Thomas, Mitchell, Echsner & Proctor, Pa, Pensacola, FL, N. Frank Elliot, III, Ranier, Gayle & Elliot, Llc, Nina D. Froeschle, Pierce O'Donnell, O'Donnell & Mortimer, Llp, Thomas V. Girardi, Girardi & Keese, Los Angeles, CA, for Plaintiffs.

Herman C. Hoffmann, Jr., Betty Finley Mullin, Simon, Peragine, Smith & Redfearn, Llp, Michael R.C. Riess, Charles Bruce Colvin, Kingsmill Riess, Llc, Terrence L. Brennan, Charles F. Seemann, Jr., Keith J. Bergeron, Deutsch, Kerrigan & Stiles Llp (New Orleans), Victor Elbert Stilwell, Jr., Ellis B. Murov, Francis J. Barry, Jr., Joseph Vincent Dirosa, Jr., Heather M. Valliant, Penya M. Moses-Fields, Victor L. Papai, Jr., City Attorney's Office, George R. Simno, III, Gerard Michael Victor, Sewerage & Water Board Legal Department, Ralph Shelton Hubbard, III, April Rochelle Roberts, Joseph Pierre Guichet, Lugenbuhl, Wheaton, Peck, Rankin & Hubbard, Ashton Robert O'Dwyer, Jr., Attorney at Law, Heather Shauri Lonian, Stone Pigman Walther Wittmann, Llc, New Orleans, LA, John Wayne Martinez, Waller & Associates, Mandeville, LA, Thomas P. Anzelmo, Andre Jude Lagarde, McCranie, Sistrunk Anzelmo, Hardy, Maxwell & McDaniel, Kyle P. Kirsch, Mark Emerson Hanna, McCranie, Sistrunk, Anzelmo, Hardy, Maxwell & McDaniel, Metairie, LA, Ben Louis Mayeaux, James L. Pate, Laborde & Neuner, Lafayette, LA, John Fredrick Kessenich, Daigle Fisse & Kessenich, Jeremy D. Goux, Wynne Goux & Lobello, Attorney's at Law, Covington, LA, James A. Cobb, Jr., John F. Emmett, Louis G. Spencer, Susan E. Henning, Emmett, Cobb, Waits & Kessenich, William D. Treeby, John M. Landis, Stone Pigman Walther Wittmann, Llc, New Orleans, LA, Christopher R. Farrell, Julia E. Mcevoy, Jones Day (Washington), Washington, DC, George T. Manning, Jones Day (Atlanta), Atlanta, GA, for Defendants.

James M. Garner, Darnell Bludworth, Kevin M. McGlone, Timothy B. Francis, Law Offices of Sher Garner Cahill Richter Klein & Hilbert, New Orleans, LA, for Xavier University.

ORDER

DUVAL, District Judge.

On September 19, 2006, Berthelot, et al. v. Boh Bros. Construction, et al., C.A. No. 05-4182 was filed in the Eastern District of Louisiana. This case began the stream of complaints that have been filed as a result of damages arising out of all levee breaches which occurred in the aftermath of Hurricane Katrina.

Berthelot was transferred to the undersigned on February 23, 2006. (Doc. 47). It was subsequently determined by the en banc court of the Eastern District of Louisiana that in order to avoid conflicting decisions among the various sections of the Court, the proper approach would be to consolidate all such filings for purposes of pretrial discovery and motion practice. As such, what is now captioned "In re: Katrina Canal Breaches Consolidated Litigation," C.A. No. 05-4182, has become the umbrella for all cases which concern damages caused by flooding as a result of breaches or overtopping in the areas of the 17th Street Canal, the London Avenue Canal, the Industrial Canal, and the Mississippi Gulf River Outlet ("MRGO").

The following Orders and Reasons1 are being entered in four individual cases which are part of the umbrella and all of which have as their centerpiece the issue of insurance coverage. Theses cases are:

Vanderbrook, et al. v. State Farm Fire & Cas. Co., et al. C.A. No. 05-6323;

Xavier University of Louisiana v. Travelers Property Ca. Co. of America, C.A. No. 06-516;

Chehardy, et al. v. State Farm, et al., C.A. No. 06-1672, 06-1673, and 06-1674; and

Humphreys v. Encompass Ins. Co., C.A. No. 06-169.2

Oral argument was conducted with respect to Vanderbrook on August 25, 2006, and with respect to Xavier, Chehardy and Humphreys on October 27, 2006. Based on the pleadings, memoranda, exhibits, arguments and the relevant law, the Court is prepared to rule on all the motions pending in all four cases.

IT IS ORDERED that this document shall be entered onto the docket of the In re Katrina Canal Breaches Consolidated Litigation, C.A. No. 05-4182 referencing all three of the cases noted above and Humphreys separately. The Court will begin with the Vanderbrook matter.

THIS ORDER PERTAINS SPECIFICALLY TO:

Vanderbrook, et al. v. State Farm Fire & Cas. Co., et al. C.A. No. 05-6323;

ORDER AND REASONS

Before the Court are the following motions filed in this matter:

Doc. No. 568 Motion for Judgment on the Pleadings filed by Hanover Ins. Co. ("Hanover") insurer of plaintiff James Capella and Made line Grenier;3

Doc. No. 569 Motion for Judgment on the Pleadings filed by Standard Fire Ins. Co. ("Standard") insurer of plaintiffs Peter Anthony Ascani, III, Gregory R. Jackson, and Monica Reyes;

Doc. No. 570 Motion for Judgment on the Pleadings filed by State Farm Fire & Cas. Co. ("State Farm") insurer of Mary Jane Silva and Robert G. Harvey;

Doc. No. 572 Motion to Dismiss Party filed by Hartford Ins. Co. of the Midwest ("Hartford") insurer of Jack Capella as the Executor of the Succession of Lillian Capella;

Doc. No. 598 Motion for Judgment on the Pleadings filed by Unitrim Preferred Ins. Co. ("Unitrim") insurer of Richard Vanderbrook.

These motions were brought in response to the class action suit brought by the "Vanderbrook" plaintiffs.

The instant petition was initially filed in Civil District Court for the Parish of Orleans on October 14, 2005. Plaintiffs filed suit seeking coverage for damages caused by the collapse of the 17th St. Canal flood-wall and the ensuing water damage as well as claims against the Board of Commissioners for the Orleans Levee District ("OLD") for its alleged negligence. Defendants removed the case to this Court on December 2, 2005. On June 1, 2006, the Court severed the claims brought against OLD from those filed against the insurers and finding no basis for jurisdiction over OLD, remanded those claims to Civil District Court. The Court retained diversity jurisdiction over the remaining insurers.

Five different policies of insurance are involved in this case — all Homeowners/All Risk policies. Oral argument was conducted on August 25, 2006, and supplemental briefing ordered thereafter. Having reviewed the complaint, memoranda, exhibits, briefing, and the relevant law, the Court is now prepared to deliver its opinion.

It cannot be gainsaid that in approaching these motions, which are the first in a daunting line of litigation concerning insurance coverage for the losses caused by the canal breaches in New Orleans, the potential impact of such a decision on individuals as well as the insurance industry might be considered overwhelming. However, the Court believes that it is its duty to approach its analysis in a straightforward, judicious manner — that is analyzing the contractual disputes between an individual policy holder and the relevant insurer, sitting as an Erie court, using the civilian approach of a Louisiana court, applying the Louisiana Civil Code and seeking guidance from the jurisprudence of the state.

I. Civilian Approach as an. Erie Court

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3 cases
  • La Louisiane Bakery Co. v. Lafayette Ins. Co.., 09–CA–825.
    • United States
    • Court of Appeal of Louisiana (US)
    • February 8, 2011
    ...water damage caused by flooding resulting from negligently maintained levees. In In re Katrina Canal Breaches Consolidated Litigation, 466 F.Supp.2d 729 (E.D.2006), affirmed in part, vacated in part, 495 F.3d 191 (5th Cir.2007), cert. denied, [5 Cir. 15] Xavier University of Louisiana v. Tr......
  • Thompson v. State Farm Fire & Casualty Company, 05CA2079.
    • United States
    • Court of Appeals of Colorado
    • March 8, 2007
    ...are inapposite. Other courts interpreting this "lead-in" clause have reached a similar conclusion. See In re Katrina Canal Breaches Consol. Litig., 466 F.Supp.2d 729 (E.D. La.2006)(same policy language excluded flood regardless of its cause); State Farm Fire & Cas. Co. v. Bongen, 925 P.2d 1......
  • Rankin v. City of Mansfield, CIVIL ACTION NO. 03-448
    • United States
    • United States District Courts. 5th Circuit. United States District Courts. 5th Circuit. Western District of Louisiana
    • May 17, 2017
    ...specifically defines a term, courts must interpret that term as defined in the contract. See In re Katrina Canal Breaches Consol. Litig. v. Encompass Ins. Co., 466 F. Supp. 2d 729(E.D. La. 2006) (extensively discussing insurance policies that specifically defined policy exclusions and the c......
1 books & journal articles
  • Hurricane Insurance Litigation: More Than Wind Versus Water
    • United States
    • Louisiana Law Review No. 68-2, January 2008
    • January 1, 2008
    ...cases were consolidated for pretrial purposes in the Eastern District of Louisiana. See In re Katrina Canal Breaches Consol. Litig., 466 F. Supp. 2d 729 (E.D. La. 2006), aff'd in part, vacated in part, 495 F.3d 191 (5th Cir. 2007). This article does not attempt to address the other issues i......

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