Louisiana construction company sues Travelers Insurance

Elaine Goodman Aug. 24, 2015, 1:39pm


A Louisiana construction business is suing its insurance company, alleging failure to process a claim against the construction company by one of its subcontractors.

Gootee Construction Inc. of Louisiana filed a lawsuit Aug. 3 against Travelers Property Casualty Company of America in U.S. District Court Eastern District of Louisiana, alleging breach of contract.

According to the complaint Gootee says a client alleges the subcontractor’s work was incomplete or defective and not finished on time. The subcontractor says it is obligated to defend it against the lawsuit.

Gootee, in turn, alleges Travelers, with which it has six commercial general liability polices, is obligated to defend against the subcontractor’s claim and pay associated expenses. The plaintiff said it filed the claim with Travelers in March but, as of Aug. 3, the insurance company had not made a decision.

Gootee wants Travelers to pay all the legal fees and litigation expenses associated with the claim against the company by the subcontractor. In addition, Gootee seeks penalties for the insurance company’s “arbitrary and capricious action” to delay a decision on the insurance claim. The company is represented by attorneys W. Lee Kohler, Douglas A. Kewley and Thomas F. Gardner of Gardner & Kewley in Metairie.

U.S. District Court Eastern District of Louisiana case number 2:15-cv-03185-SSV-KWR.

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