The Firm Wins Victory for Insurer on Key Coverage Dispute and Bad Faith Claim

(Client: Chubb)

In the United States District Court for the Eastern District of Louisiana, Steve Usdin secured summary judgment for a major insurer. Resolving cross-motions for summary judgment in the insurer’s favor, Judge Zainey noted that “the only reasonable interpretation” of the policy supported the insurer’s position and dismissed the insured’s claims, including the bad faith claims. At issue were the trigger and scope of business interruption coverage for business income losses associated with a mandatory evacuation for Hurricane Gustav. The ruling potentially has broad implications for business interruption losses claimed as a result of evacuation orders.