September, 2007

• The United States Fifth Circuit Court of Appeal reversed the district court's ruling on the ineffectiveness of the water damage exclusion to exclude coverage under certain all risk homeowner policies for water damage resulting from third party negligence in the design, construction and maintenance of the New Orleans levee system. In re: Katrina Canal Breaches Litigation, CA No. 07-30119, 08/02/2007. Application for rehearing has been made and, because the same issue is pending in the Louisiana State Courts, additional litigation on this issue is expected.



• Louisiana Courts will invalidate any UM rejection form that is not properly completed - a term that has been defined to mean inclusion of the policy number on the rejection form itself. Duncan v. USAA Ins. Co., 06-363 (La. 11/29/06), 950 So.2d 544, rehg. denied, 2/16/076. Although several dissenting opinions were written, currently please note that insertion of the policy number is necessary even in situations where only one policy has been issued to the insured and there is otherwise sufficient indication to infer the applicant's intention to reject coverage.



• Please note that the U.S. Fifth Circuit recently held that non-dependent parents of a longshoreman who died in territorial waters were not entitled to recover damages for loss of society. In re American River Transp. Co., 490 F.3d 351 (5th Cir. (La.) 2007). By this decision, the Fifth Circuit joins that of the U.S. Second, Sixth, and Eleventh Circuits.

Disclaimer: The content of this update involves only general statements of law; it is not meant to be used as the definitive word in any situation in which these issues may arise. The particular facts of the case will influence how a court in Louisiana may apply the law.

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