Landry v. Louisiana Citizens Prop. Ins. Co.
| Decision Date | 28 August 2007 |
| Docket Number | No. 2007-247.,2007-247. |
| Parties | Mark LANDRY and Barbara Landry v. LOUISIANA CITIZENS PROPERTY INSURANCE COMPANY. |
| Court | Court of Appeal of Louisiana — District of US |
Larmann & Papale, L.L.P. Metairie, Louisiana, for Amicus Curiae, Fidelity and Deposit Company of Maryland, Empire Fire and Marine Insurance Company, Empire Indemnity Insurance Company; and Centre Insurance Company.
Terrence J. Lestelle, Andrea S. Lestelle, Jeffery B. Struckhoff, Lestelle & Lestelle APLC, Metairie, Louisiana, for Amicus Curiae, Daryl Chauvin, et al.
John N. Ellison, Darin J. McMullen, Anderson Kill & Olick, P.C., Philadelphia, PA, for Amicus Curiae, United Policyholders and the Williams Representative Policyholders.
Larry D. Dyess, Larry D. Dyess, APLC Baton Rouge, Louisiana, for Amicus Curiae, United Policyholders and the Williams Representative Policyholders.
Drew Ranier, N. Frank Elliot III, Ranier, Gayle & Elliot, L.L.C., Lake Charles, Louisiana, for Amicus Curiae, United Policyholders and the Williams Representative Policyholders.
Court composed of SYLVIA R. COOKS, JOHN D. SAUNDERS, MICHAEL G. SULLIVAN, GLENN B. GREMILLION, and JAMES T. GENOVESE, Judges.
The issue presented for our review is whether the Louisiana Valued Policy Law, La.R.S. 22:695, requires an insurer to pay the full face value of the policy when concurrent perils (covered and non-covered) combine, during the course of a single climatic event, to render the home a total loss. The Landrys assert the Valued Policy Law requires Citizens to pay the full valuation of the property under the policy in the event of a total loss if the total loss is only caused partially by wind, a covered peril, and the remaining damage is caused by flood, a non-covered peril. On the other hand, Citizens contends the Valued Policy Law does not mandate full recovery in the event of a total loss caused in part by a covered peril and in part by a non-covered peril.
Plaintiffs contend a resolution of this issue will have far-reaching consequences for the citizens of Louisiana's coastal parishes, who have suffered and are attempting to recover from the devastating effects of Hurricanes Rita and Katrina. Citizens also urges this decision will impact Louisiana business owners, whose very existence is dependent on affordable insurance coverage, and cautions that our decision could cripple Louisiana's effort to recover by burdening its citizens further and making it unattractive for insurance carriers to do business in this State.
We have carefully studied the issue posed in this case and are confident that its resolution does not require us to change Louisiana's legal course, to succumb to emotion or to engage in doomsday scenarios in rendering a ruling. Our decision, today, is firmly grounded on well-established Louisiana jurisprudence and law. The performance of our sworn duty, thus, requires only that we declare what has long since been settled in the courts of this State.
Plaintiffs, Mark and Barbara Landry, are Louisiana citizens and homeowners. The Landrys purchased a policy of insurance on their home in Erath, Vermilion Parish, Louisiana from Louisiana Citizens Property Insurance Corporation (Citizens), which policy had a face value of $57,200. It is undisputed the policy covered any loss to the Landrys' home occasioned by wind and rain but specifically excluded damage caused by flood waters. It is also undisputed that Plaintiffs did not secure or have in effect at the time of the storm a separate policy covering damage to their home as a result of flood.1 Their home, located in one of Louisiana's coastal parishes, was in the path of Hurricane Rita and was rendered a total loss.
The Landrys sued Citizens in state court seeking to enforce state claims under their wind policy covering damage allegedly caused to their home by wind and rain. Plaintiffs alleged in their original petition that Plaintiffs specifically alleged "[g]iven the total loss and wind damage which occurred with respect to [their] Louisiana home, the Defendant is bound, under La.R.S. 22:695, to pay the face value of the . . . homeowner's policy." The Landrys asserted because Citizens placed a valuation on the property and fixed the premium accordingly, at the time of issuance, and did not provide any other method for offsets or deductions from the face value (including offsets and deductions for flood damage) Citizens is obligated for the full amount under the policy.
Citizens answered the petition and, in addition to asserting numerous liability defenses, affirmatively pled that "[t]he damages of which plaintiffs complain were caused by act(s) of God, including but not limited to flood waters, high tides and/or storm surge, for which defendant is not responsible under the terms, conditions, limits, and exclusions contained in [the] policy. . ." Citizens relies on the flood exclusion provision in the policy, which provides:
We do not insure for loss caused directly or indirectly by any of the following. Such loss is excluded regardless of any other cause or event contributing concurrently or in any sequence to the loss.
. . . .
3. Water Damage, meaning:
a. Flood, surface water, waves, tidal water, overflow of a body of water, or spray from any of these, whether or not driven by wind. . . .
Subsequently, Plaintiffs filed a motion for summary judgment seeking a declaratory ruling interpreting Louisiana's Valued Policy Law, La.R.S. 22:695, and assigning that the "sole issue before the court on [the] motion is whether Louisiana's Valued Policy Law requires the fire and wind insurance carrier to pay the full value of the insurance policy in the event of a total loss of a structure if the total loss is only caused partially by wind and the remaining damages is caused by a non-covered peril (flood)." The trial court granted a partial summary judgment in Plaintiffs' favor. In doing so, the trial court in its Reasons For Ruling declared:
Plaintiff sustained a total loss, and . . . the policy application contained no method of loss computation for any offsets or deductions in the event of such total loss. Therefore, under the VPL, LSA.R.S.695(A), Citizens is liable for the full valuation without offset or deduction. Furthermore, under Hart . . . Citizens is liable to the Landrys for the face value of the policy despite the fact that the covered peril was not the sole cause of the total loss. . . .
Citizens filed the present appeal and assigns two errors for our review.2 First, Citizens contends the trial court erred "in finding that in the event of a total loss caused in part by a covered peril and in part by a non-covered peril the VPL requires that the entire policy limits be paid." Second, it contends the trial court erred "in finding the VPL requires that the insurance application include a method of loss calculation allowing offsets and deductions for flood damage in the event of a total loss caused in part by a covered peril such as wind, and in part by a non-covered peril, such as flood."
After examining the jurisprudence, applicable statutes, the briefs of all interested parties, and the record in this case, we hereby reverse that portion of the judgment granting summary judgment in Plaintiffs' favor. Additionally, we amend, render, and remand the matter for further proceedings consistent with this court's opinion.
Although styled as a motion for summary judgment, Plaintiffs filed a motion with the trial court, in essence, seeking to have it declare their rights under a Louisiana insurance contract and the Louisiana Valued Policy Law. A court may declare the rights of parties under a contract or statute or express the opinion of the court on a question of law even if further relief is or could be claimed.3 In re P.V.W., 424 So.2d 1015 (La.1982); Bergen Brunswig Drug Co. v. Poulin, 93-1945 (La.App. 1 Cir. 6/24/94), 639 So.2d 453; Watts v. Aetna Cas. and Sur. Co., 574 So.2d 364 (La.App. 1 Cir.), writ denied, 568 So.2d 1089 (La.1990); La.Code Civ.P. art. 1871. Resolution of all the disputed facts in a case also is not fatal to rendition of a declaratory ruling. A person is entitled to such relief when his rights are uncertain or disputed in an immediate and genuine situation...
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