NEW ORLEANS – An Orleans Parish corporation is suing its insurer for alleged breach of contract after Lloyd's of London allegedly failed to pay for damages resulting from Hurricane Isaac's landfall.
Mothram Inc. filed suit against Certain Underwriters at Lloyd's of London in the Orleans Parish Civil District Court on Aug. 28.
Mothram claims that Hurricane Isaac caused substantial property damage to its property at 2715-2731 Chartres Street in New Orleans on Aug. 28, 2012. The plaintiff asserts that it had insurance coverage and business interruption coverage for the property with Lloyd's when the storm made landfall.
The petition states that Mothram's property was significantly destroyed because of Hurricane Isaac's wind speeds and water intrusion. Mothram alleges that it filed a claim with Lloyd's and submitted satisfactory proof of loss showing structural and content damage, as well as business interruption. The plaintiff states that all of the losses were should have been covered by Lloyd's.
Mothram contests that Lloyd's has delayed and denied full payment of the claim within 30 and 60 days of receipt. According the suit, Lloyd's has repeatedly refused to pay the full amount owed under the policy.
The defendant is accused of acting in bad faith by arbitrarily and capriciously refusing to pay for the damages to Mothram's buildings and their contents in addition to the business interruption benefits included in the plaintiff's insurance policy.
The plaintiff seeks an unknown amount in damages for the amount required by the policy, in addition to court costs, penalties and fees.
Mothram Inc. is represented by John H. Denenea Jr. of Shearman~Denenea LLC and attorney David W. Bernberg.
The case has been assigned to District F Judge Christopher J. Bruno.
Case no. 2014-08521.