Rayne Memorial United Methodist Church v. Church Mutual Insurance Company, S.I.

CourtDistrict Court, E.D. Louisiana
DecidedMay 8, 2026
Docket2:23-cv-04129
StatusUnknown

This text of Rayne Memorial United Methodist Church v. Church Mutual Insurance Company, S.I. (Rayne Memorial United Methodist Church v. Church Mutual Insurance Company, S.I.) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rayne Memorial United Methodist Church v. Church Mutual Insurance Company, S.I., (E.D. La. 2026).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA

RAYNE MEMORIAL UNITED CIVIL ACTION METHODIST CHURCH, Plaintiff

VERSUS NO. 23-4129

CHURCH MUTUAL INSURANCE SECTION: “E” (3) COMPANY, S.I., Defendant

ORDER AND REASONS Before the Court is a motion for judgment as a matter of law or, in the alternative, for a new trial filed by Defendant, Church Mutual Insurance Company, S.I. (“Defendant”).1 Plaintiff, Rayne Memorial United Methodist Church (“Plaintiff”) filed a response.2 Defendant filed a reply.3 BACKGROUND This matter arises out of a Hurricane Ida insurance coverage dispute. Plaintiff alleged that Defendant issued an insurance policy to cover Plaintiff’s property on St. Charles Avenue in New Orleans, Louisiana, and that on August 29, 2021, Hurricane Ida struck Southeast Louisiana, damaging several buildings in Plaintiff’s church complex.4 These allegations were not disputed at trial. Plaintiff sued Defendant on August 24, 2023 for breach of contract, as well as for statutory penalties and attorneys’ fees pursuant to La. R.S. 22:1892 and La. R.S. 22:1973.5 A four-day trial was held from February 2 to February 5, 2026.6 At the conclusion of

1 R. Doc. 181. 2 R. Doc. 187. 3 R. Doc. 188. 4 R. Doc. 1 at ¶ ¶ 6-9. 5 R. Doc. 1. Plaintiff’s case, Defendant moved for judgment as a matter of law under Fed R. Civ. P. 50(a), arguing it was entitled to a directed verdict because no reasonable juror would have a legally sufficient basis to find that: (1) Plaintiff had spent enough money to meet its deductible; (2) Defendant received satisfactory proof of loss and, if it did receive it, when; (3) Defendant engaged in “bad faith or vexatious behavior” or made any misrepresentations; (4) Hurricane Ida caused Plaintiff’s damages;7 and (5) Plaintiff was entitled to consequential damages.8 The Court denied Defendant’s motion, finding there was legally sufficient evidence from which a reasonable person could find in favor of

Plaintiff on these issues.9 At the end of trial, the jury found that Defendant had breached its insurance contract with Plaintiff and violated La. R.S. 22:1892 and La. R.S. 22:1973.10 The jury found that Defendant arbitrarily, capriciously, and without probable cause had failed to make its payments in the amounts of $110,652.21 and $321,669.17 within thirty days of receiving satisfactory proof of loss, violating La. R.S. 22:1892.11 The jury found Defendant, arbitrarily, capriciously, and without probable cause, never paid Plaintiff an additional $2,818,230.66 for damages covered under the insurance policy after receiving satisfactory proof of loss, violating La. R.S. 22:1892 and La. R.S. 22:1973.12 The jury also found Plaintiff suffered $123,935 in consequential damages due to Defendant’s failure to pay Plaintiff the full amount it owed under the policy and Defendant’s misrepresentation

of insurance policy provisions.13

7 Defendant’s exact argument was that Plaintiff’s “own causation expert testified that he saw some preexisting water damage signs, but said he could not confirm their cause[,]” which the Court interprets broadly as an argument regarding causation. R. Doc. 187-1 at p. 3. 8 R. Doc. 187-1 at pp. 3-5. 9 Id. at p. 11. 10 R. Doc. 169. 11 R. Doc. 169 at Question Nos. 1, 2. 12 Id. at Question Nos. 4-7. Following the return of the jury’s verdict, the Court assessed the mandatory penalty against Defendant under La. R.S. 22:1892 of 50% of all damages Defendant owed Plaintiff under the contract that Defendant failed to pay within 30 days of receiving satisfactory proof of loss; this penalty amounted to $1,625,276.02.14 Because significant penalties were awarded against the Defendant as a result of the jury’s findings that Defendant failed to timely pay amounts owed under the insurance policy, the Court exercised its discretion to reduce the penalties awarded as a result of Defendant’s misrepresentations in violation of La. R.S. 22:1973 to zero dollars ($0.00).15 The Court

entered a final judgment against Defendant in the amount $4,567,441.68— this total includes the additional amount Defendant failed to pay Plaintiff ($2,818,230.66), consequential damages ($123,935), and penalties under La. R.S. 22:1892 ($1,625,276.02).16 On March 27, 2026, Defendant filed the present Motion for Judgment as a Matter of Law or, in the Alternative, for a New Trial. Defendant raises several arguments it believes warrant granting its motion for judgment as a matter of law. Defendant argues Plaintiff failed to offer sufficient evidence to support the jury’s findings: that Hurricane Ida caused the damage to Plaintiff’s building complex;17 that pre-existing defects and Plaintiff’s failure to mitigate damages did not cause the interior water damage in Plaintiff’s buildings;18 that Defendant violated La. R.S. 22:1892, as Plaintiff failed to show

that Defendant acted arbitrarily and capriciously in failing to pay Plaintiff the full amount of damages Plaintiff sought;19 and that Defendant violated La. R.S. 22:1973, as Plaintiff

14 R. Doc. 175. 15 R. Doc. 174. 16 Id. 17 R. Doc. 181-1 at pp. 10-11. 18 Id. at pp. 9, 10-14. failed to show Defendant made intentional misrepresentations to Plaintiff.20 In addition, Defendant argues it actually overpaid Plaintiff for its claim.21 Defendant argues that Plaintiff provided documentation it spent $778,140.85 for repairs after Hurricane Ida, which is $215,690.85 more than Plaintiff’s deductible of $562,450.00.22 Defendant argues that it owed Plaintiff only the $215,690.85 difference between Plaintiff’s deductible and the amount Plaintiff spent on repairs, makings its $472,271.39 tender to Plaintiff an overpayment.23 In the alternative, Defendant argues a new trial is warranted. Defendant argues the

Court’s Jury Instruction No. 36 failed to include relevant language from La. R.S. 22:1892, which resulted in prejudice to the Defendant.24 Defendant argues the inclusion of Questions 10 and 15 concerning consequential damages in the Jury Verdict Form also caused Defendant prejudice.25 Finally, Defendant argues it suffered prejudice due to the Court’s multiple evidentiary errors.26 Plaintiff argues Defendant did not raise any argument in its Rule 50(a) motion concerning proof of causation or Plaintiff’s failure to mitigate and, as a result, Defendant has waived these arguments.27 Plaintiff argues that, even if the Court were to consider these waived arguments, the Court still should deny Defendant’s motion.28 Plaintiff argues it provided ample evidence demonstrating that Hurricane Ida caused its damages and that Defendant acted arbitrarily and capriciously in failing to pay Plaintiff the full

20 Id. at p. 18. 21 Id. at pp. 14-15 22 Id. at p. 14. 23 Id. at p. 15. 24 Id. at p. 20. 25 Id. at p. 21. 26 Id. at pp. 23-25. 27 R. Doc. 187 at pp. 3-4. amount of damages owed.29 In addition, Plaintiff argues Defendant bears the burden of proving that Plaintiff failed to mitigate its damages and that the jury correctly found Plaintiff had failed to carry this burden.30 Plaintiff further argues the insurance policy does not require that Plaintiff have already made repairs to its buildings to qualify for compensation and, as a result, Defendant’s liability is not limited to $215,690.85.31 Plaintiff argues also that a new trial is unwarranted.32 Plaintiff argues the Court did not err in instructing the jury or in including questions on consequential damages in the Jury Verdict Form.33 Finally, Plaintiff argues the Court did not commit any

evidentiary errors.34 LAW AND ANALYSIS I. Defendant is not entitled to judgment as a matter of law.

The Court will deny Defendant’s Rule 50(b) motion for judgment as a matter of law. Rule 50(b) of the Federal Rules of Civil Procedure

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Reed v. Iowa Marine and Repair Corp.
16 F.3d 82 (Fifth Circuit, 1994)
Sibley v. Lemaire
184 F.3d 481 (Fifth Circuit, 1999)
Logan v. Burgers Ozark Country Cured Hams Inc.
263 F.3d 447 (Fifth Circuit, 2001)
French v. Allstate Indemnity Co.
637 F.3d 571 (Fifth Circuit, 2011)
Garriott v. NCsoft Corp.
661 F.3d 243 (Fifth Circuit, 2011)
Durio v. Horace Mann Insurance Co.
74 So. 3d 1159 (Supreme Court of Louisiana, 2011)
Karim v. Finch Shipping Co.
111 F. Supp. 2d 783 (E.D. Louisiana, 2000)
Roland Alonso v. Westcoast Corporation
920 F.3d 878 (Fifth Circuit, 2019)
Seilham v. Commonwealth Land Title Ins. Co.
360 F. Supp. 3d 412 (E.D. Louisiana, 2018)
First Baptist Ch v. Church Mutual Ins
105 F.4th 775 (Fifth Circuit, 2024)
First United v. Church Mutual Ins
119 F.4th 417 (Fifth Circuit, 2024)

Cite This Page — Counsel Stack

Bluebook (online)
Rayne Memorial United Methodist Church v. Church Mutual Insurance Company, S.I., Counsel Stack Legal Research, https://law.counselstack.com/opinion/rayne-memorial-united-methodist-church-v-church-mutual-insurance-company-laed-2026.