Luxury Inn & Suites sues property insurer for allegedly not paying Hurricane Isaac claims

By Kyle Barnett | Jun 6, 2013

Alfred A. Olinde Jr.

GRETNA – A Gretna hotel is suing their property insurance provider for allegedly not paying them the proper amount of their losses during a recent hurricane.

Mehsun LLC filed suit against Louisiana Citizens Property Insurance Corp. in the 24th Judicial District Court on April 12.

Mehsun is the owner and operator of the Luxury Inns and Suites located at 1411 Claire Ave. in Gretna. The plaintiff alleges that they had property insurance through Louisiana Citizens Property Insurance Corp. when Hurricane Isaac made landfall on Aug. 29, 2012.

Mehsun asserts that they received severe damage in the storm to several rooms of their hotel where rooms contents were destroyed and subsequently could not be rented out before being repaired. The plaintiff claims that as a result of the direct hit by hurricane that caused wind and wind-driven rain and debris damage.

Mehsun alleges that Louisiana Citizens Property Insurance Corp. did not inspect the property until several weeks after the storm and are accused of doing a “slip shod” inspection when they finally went through the hotel premises, which led to an insufficient insurance claim payout.

On Feb. 22, 2013 the plaintiff sent a itemized list showing all of the damages they assert were a result of the hurricane, but those claims were denied by the defendant who also informed them they would like to conduct a joint re-inspection. However, Mehsun claims that despite their willingness to take part in a re-inspection the property adjuster for Louisiana Citizens Property Insurance Corp. never responded to their request to set a time for the effort.

The defendant is accused of bad faith in violation of state law, breach of contract, unreasonably refusing to pay benefits, intentionally delaying payments, intentionally failing to conduct a reasonable investigation, not providing reliable knowledge to deny plaintiff’s claims, using a methodology contrary and offensive to public policy in Louisiana, not accounting for increased labor and construction costs due to the economic conditions and intentionally delayed payments.

An unspecified amount in damages is sought for loss of profits, damage to business reputation, loss of future business income, legal costs and attorney fees.

Mehsun is represented by Alfred A. Olinde Jr. of New Orleans-based Reasonover & Olinde LLC.

The case has been assigned to Division J Judge Stephen C. Grefer.

Case no. 725-936

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