Hoang Tran Mar. 15, 2016, 2:43pm

NEW ORLEANS – Homeowners have filed a lawsuit against Select Portfolio Servicing for allegedly withholding insurance money paid to them for damages on their home.

Elisabeth Harney and Noel Harney filed a lawsuit on March 9 in the U.S. District Court for the Eastern District of Louisiana against the servicing company, claiming violations of the Real Estate Settlement Procedure Act, breach of contract and unjust enrichment.

The plaintiffs assert that their house, located in Harvey, was severely damaged during Hurricane Isaac around Aug. 29, 2012, and suffered hail damage in February 2013. They allegedly made several claims for damages through their insurance company, Southern Fidelity, and, through the assistance of lawyers, was issued payment. The checks, plaintiffs assert, were made out to the plaintiffs, their lawyer, and the defendant but was first sent to the defendant with the belief that, after fees, the rest of the money would be dispersed to the plaintiffs.

However, despite many attempts via certified mail by plaintiff’s law firm, Binegar Christian, the defendant has purportedly not released any of the money and, because of defendant’s alleged unlawful action, the plaintiffs claims to have been unable to make repairs to their house and it has become a total loss. The plaintiffs assert that they have provided the information defendant repeatedly requested, but the defendant has allegedly refused to release the money.

The Harneys are now suing for judgment in an amount that will fair and fully compensate them, the costs of the suit, and any other rewards deemed just by the court. They are seeking a jury trial and are represented by David A. Binegar and Tiffany R. Christian from Binegar Christian LLC in New Orleans.

U.S. District Court for the Eastern District of Louisiana Case number 2:16-cv-01998-CJB-DEK

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U.S. District Court for the Eastern District of Louisiana
500 Poydras Street
New Orleans, LA 70113

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