In Re Katrina Canal Litigation Breaches

524 F.3d 700, 2008 WL 1118176
CourtCourt of Appeals for the Fifth Circuit
DecidedApril 23, 2008
Docket08-30145
StatusPublished
Cited by30 cases

This text of 524 F.3d 700 (In Re Katrina Canal Litigation Breaches) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Katrina Canal Litigation Breaches, 524 F.3d 700, 2008 WL 1118176 (5th Cir. 2008).

Opinion

524 F.3d 700 (2008)

In Re: KATRINA CANAL LITIGATION BREACHES.
State of Louisiana; etc., et al., Plaintiffs-Appellants,
v.
AAA Insurance; et al., Defendants-Appellees.

No. 08-30145.

United States Court of Appeals, Fifth Circuit.

April 11, 2008. *701 Louisiana, Stanwood R. Duval, Jr., J.

Calvin Clifford Fayard, Jr., Denham Springs, LA, Isabel B. Wingerter, Baton Rouge, LA, for Plaintiffs-Appellants.

Samuel Issacharoff (argued), New York University School of Law, New York City, for State of LA.

Alan J. Yacoubian, Neal J. Favret, Rachael Patton Catalanotto, Johnson, Johnson, Barrios & Yacoubian, Judy Y. Barrasso, Susan M. Rogge, H. Minor Pipes, III, Stephen L. Miles, Barrasso, Usdin, Kupperman, Freeman & Sarver, Ralph S. Hubbard, III, Seth Andrew Schmeeckle, Lugenbuhl, Wheaton, Peck, Rankin & Hubbard, Richard Edward King, Matthew Joseph Lindsay, Galloway, Johnson, Tompkins, Burr & Smith, Wayne J. Lee, Stephen G. Bullock, Mary Lue Dumestre, Andrea Leigh Fannin, Stone, Pigman, Walther & Wittmann, Maura Z. Pelleteri, Amy S. Malish, Krebs, Farley & Pelleteri, Gordon Paul Serou, Jr., Law Offices of Gordon P. Serou, Jr., New Orleans, LA, Walter D. Willson, Wells, Marble & Hurst, Ridgeland, MS, Neil C. Abramson, Jacqueline M. Brettner, Harry A. Rosenberg, Phelps Dunbar, Patrick D. Derouen, Laurie L. Dearmond, Porteous, Hainkel & Johnson, Julia A. Dietz, Degan, Blanchard & Nash, Wendy Hickok Robinson, Gordon, Arata, McCollam, Duplantis & Eagan, Gerard E. Wimberly, Jr., Daniel T. Plunkett, McGlinchey Stafford, Ethan N. Penn, Musgrave, McLachlan & Penn, LLC, Edward J. Lilly, Crull, Castaing & Lilly, Deborah B. Rouen, Adams & Reese, John W. Waters, Jr., Bienvenu, Foster, Ryan & O'Bannon, LLC, Nancy Scott Degan, Paul Lee Peyronnin, Kent Andrew Lambert, Baker, Donelson, Bearman, Caldwell & Berkowitz, Thomas R. Blum, Simon, Peragine, Smith & Redfearn, New Orleans, LA, Richard Joseph Doren, Gibson, Dunn & Crutcher, Los Angeles, CA, Daniel Wintrop Nelson, Gibson, Dunn & Crutcher, Washington, DC, Richard L. Fenton (argued), Steven M. Levy, Alan S. Gilbert, Sonnenschein, Nath & Rosenthal, Chicago, *702 IL, Katherine B. Armstrong, Sheila L. Birnbaum, Skadden, Arps, Slate, Meagher & Flom, New York City, Charles Louis Chassaignac, IV, Porteous, Hainkel & Johnson, John Powers Wolff, III, Christopher Keith Jones, Keogh, Cox & Wilson, Ltd., Anthony Joseph Rollo, Jr., McGlinchey Stafford, Marshall M. Redmon, Phelps Dunbar, Baton Rouge, LA, Walter D. Willson, Wells, Marble & Hurst, Ridgeland, MS, Thomas Hebert Huval, Huval, Veazey, Felder & Aertker, Covington, LA, John E. Unsworth, Jr., William Glenn Burns, Lauren E. Brisbi, Dominic J. Ovella, Sean Patrick Mount, Anne Elizabeth Medo, Daniel Michael Redmann, John Christopher Dippel, Hailey, McNamara, Hall, Larmann & Papale, Lawrence J. Duplass, C. Michael Pfister, Kelly C. Bogart, Jaime Michale Cambre, Duplass, Zwain, Bourgeois & Morton, Howard Bruce Kaplan, Bernard, Cassaissa, Elliott & Davis, John R. Walker, Allen & Gooch, Christopher Raymond Pennison, Jay M. Lonero, Larzelere, Picou, Wells, Simpson, Lonero, Metairie, LA, Anne D. LeJeune, McGlinchey, Stafford, Youngblood & Bendalin, Dallas, TX, Ben Louis Mayeaux, James L. Pate, Laborde & Neuner, Lafayette, LA, Levon G. Hovnatanian, Christopher Weldon Martin, Martin R. Sadler, Martin, Disiere, Jefferson & Wisdom, Houston, TX, Stephen E. Goldman (argued), Wystan Michael Ackerman, Robinson & Cole, Hartford, CT, for Defendants-Appellees.

Before HIGGINBOTHAM, STEWART and ELROD, Circuit Judges.

PATRICK E. HIGGINBOTHAM, Circuit Judge:

The Attorney General of Louisiana filed a class action, naming the State and numerous Louisiana citizens as Plaintiffs. The class action alleged that the Defendant insurance companies failed to pay covered insurance claims following Hurricanes Katrina and Rita and as a result breached the insurance contracts to which the State is a partial assignee. It requested damages and declaratory and injunctive relief, all under state law. At several Defendants' request, the case was removed to federal district court under the Class Action Fairness Act ("CAFA").[1] Louisiana moved to remand to state court, arguing that CAFA did not apply and that Louisiana enjoyed sovereign immunity from involuntary removal to federal court in that it was suing in its state court to enforce state law. The district court denied remand. Louisiana petitioned this court for permission to appeal the interlocutory order under CAFA, which we granted.

I

Louisiana administers the Road Home Program, which advances money to Louisiana homeowners for reconstructing homes damaged or destroyed by Hurricanes Rita and Katrina. Any homeowner could receive up to $150,000 from Louisiana with a written assignment to the State of the owner's claim against his insurer in the amount of the payment received from the State. Only an owner's claim for damage to his dwelling was assigned. These assignments, *703 functionally subrogation agreements, read in part:

Notwithstanding anything to the contrary contained herein, this is a limited subrogation and assignment, and is limited to an amount not to exceed the amount of the grant received by the undersigned [insured] under the Program, to which the State has not been reimbursed from other sources.

While an owner's assignment was partial in that the owner retained his claim against his insurer for amounts exceeding the sum advanced by the State, the assignment also granted Louisiana the right to sue his insurer in the owner's name for the owner's insured losses.[2]

Under a Louisiana statute, all insurance claims relating to damages from Hurricane Katrina had to be filed by September 1, 2007.[3] On August 23, 2007, Louisiana filed this suit in Orleans Parish against more than 200 insurance companies. By an amended petition filed five days later, Louisiana added a class action against the same defendants under Louisiana Code of Civil Procedure, Article 591.[4] It was filed on behalf of "The State of Louisiana, individually and on behalf of" the state agency administering the program. The asserted class consisted of:

[a]ll current and former citizens of the State of Louisiana who have applied for and received or will receive funds through the Road Home Program, and who have executed or will execute a subrogation or assignment agreement in favor of the State, and to whom insurance proceeds are due and/or owed for damages sustained to any such recipient's residence as result of any natural or man-made occurrence associated with Hurricanes Katrina and/or Rita under any policy of insurance, as plead herein, and for which the State has been or will be granted or be entitled to recover as repayment or reimbursement of funds provided to any such recipient through the Road Home Program.

The amended petition[5] requested injunctive relief, declaratory judgment, damages, and "an order finding the Insurance Company Defendants liable to the State and the recipients (members of the class), as plead herein," "[f]or an injunctive order directing that the Insurance Company Defendants pay all coverage afforded under *704 the terms of the recipients' policies, and where a total loss is found, an injunctive order directing the payment of the full value placed on the recipients' residence...

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Cite This Page — Counsel Stack

Bluebook (online)
524 F.3d 700, 2008 WL 1118176, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-katrina-canal-litigation-breaches-ca5-2008.