Background
After Americas Insurance Company, Inc. was declared insolvent on June 23, 2022, Beverly Blake sued the insurer on August 26, 2022, seeking policy coverage, statutory penalties, and attorney fees. She later amended her petition to add the Louisiana Insurance Guaranty Association, which assumes certain covered obligations of insolvent insurers.
LIGA moved for summary judgment, arguing that Blake did not have a covered claim under La.R.S. 22:2058(A)(1)(c)(i) because LIGA did not receive notice of her claim until November 8, 2022—after the October 23, 2022 claims-bar deadline established by the insurer’s insolvency order. The trial court denied the motion, and LIGA sought supervisory review.
The Court’s Holding
The court granted LIGA’s supervisory-writ application, made the writ peremptory, reversed the trial court’s denial of summary judgment, and rendered judgment granting summary judgment for LIGA. It dismissed Blake’s claims against LIGA with prejudice.
The supplied opinion is Judge Ortego’s dissent and does not include the majority’s reasoning. Judge Ortego would have denied LIGA relief and affirmed the trial court, reasoning that Blake’s timely suit against the insolvent insurer, followed by the addition of LIGA, related back and constituted a timely covered claim under the Louisiana Supreme Court’s decision in Bryan v. Louisiana Citizens Property Insurance Corporate.
Key Takeaways
- The court held that LIGA was entitled to summary judgment and dismissed Blake’s claims against it with prejudice.
- LIGA’s motion rested on its receipt of notice after the claims-bar deadline contained in the insurer’s insolvency order.
- The dissent concluded that Blake’s timely suit against the insolvent insurer and later addition of LIGA should relate back and preserve her claim.
Why It Matters
The ruling underscores the potentially dispositive effect of insolvency-order claims deadlines in litigation involving LIGA. Because the supplied text contains only the dissent, however, it does not disclose the majority’s full analysis of why Blake’s timely suit against the insolvent insurer failed to preserve her claim against LIGA.