"RECENT DEVELOPMENTS"
Fourth Circuit Reverses Judge James Williams' Ruling on Insurance Coverage and Remands the case to Civil District Court for a full blown trial on the merits on the issue of insurance coverage
On December 20, 2011, a five-judge panel of the Fourth Circuit Court of Appeal [composed of Judge James McKay, III, Judge Michael Kirby, Judge Max Tobias, Judge Paul Bonin and Judge Daniel Dysart] reversed the decision on insurance coverage rendered by Judge, Pro Tempore James M. Williams. As you may recall, Judge Williams had ruled in favor of the plaintiff class saying that HANO insurance policies had no aggregate limits on the personal injury coverage afforded to HANO.
The Fourth Circuit ruled that the insurance policies of National Union and Republic are ambiguous (unclear) regarding their limitations of personal injury coverage. The Fourth Circuit disagreed with Judge Williams' finding that he could rule in plaintiffs' favor that the policies have no aggregate limit using the procedural vehicle of a motion for summary judgment. The Fourth Circuit ruled that the issue of the limits of the insurance policies must be decided at a trial on the merits.
The Fourth Circuit ruled that the U.S. Fire insurance policy is clear. It does not provide any limits on the amount of personal injury coverage. However, a trial court could "reform" the policy because maybe that was not the intention of the parties. So, the Fourth Circuit is remanding this matter to the trial court to decide whether the policy language should be reformed at a trial on the merits.
All parties are appealing the Fourth Circuit's ruling to the Louisiana Supreme Court. Briefs are currently being prepared for submission to the Louisiana Supreme Court. We do not know if the matter will be set for oral argument before the Louisiana Supreme Court. We do not know when the Louisiana Supreme Court will rule.
What does this mean? This case is stalled again. We cannot go to trial on any damages cases until this insurance coverage matter is resolved. We will not know how much money will be available to pay the claims of class members until the matter of insurance coverage is finally resolved. If we are forced to have a trial on the issue of insurance coverage then the case will be delayed for at least a year while we prepare for trial and hold a trial. An appeal of that trial judgment could take another year. In other words, unless the Louisiana Supreme Court reverses the Fourth Circuit's ruling we are looking at several years of litigation before this case is resolved.
The Fourth Circuit affirmed Judge Sidney Cates' ruling denying the Defendants' Motion to Recuse Ad Hoc Judge Nadine Ramsey
On December 20, 2011, the Fourth Circuit affirmed Judge Sidney Cates' ruling denying the Defendants' Motion to Recuse Ad Hoc Judge Nadine Ramsey from presiding over this case. The Louisiana Supreme Court appointed retired Judge Ramsey to preside over this case until its conclusion. The Defendants are challenging her service as a judge on this case (although she previously presided over it for years and rendered the judgment on liability) because she owns HUD subsidized rental property.
The Defendants are appealing the Fourth Circuit Court of Appeal's ruling to the Louisiana Supreme Court.
Consent Judgment by the OPSB
The OPSB entered into a Consent Judgment regarding all of the claims for Moton Students and Moton Employees that were supposed to go to trial in August 2011. At this time, Class Counsel and the OPSB's attorney are working on a Consent Judgment to resolve ALL MOTON CLAIMS. We hope to accomplish this task within the next two months. Once the Consent Judgment is filed, then the claims will be placed in line for payment by the OPSB. It may take years for them to pay ALL Moton related claims. For example, the OPSB still has not paid the Judgment that Judge Ramsey ordered it to pay in 2006.
Tender of Funds into Registry of the Court by LIGA
One of HANO's insurance companies (Southern American Insurance Company) declared bankruptcy a long time ago. The Louisiana Insurance Guaranty Association (LIGA) stepped in to handle claims made against it. On June 16, 2011, Judge Irons granted LIGA permision to deposit the funds remaining on Southern American Insurance Company's policy for HANO into the registry of the Clerk of Court. To be clear, this is not a settlement or compromise. The Plaintiffs' attorneys do not have possession of these funds. It is highly unlikely that these funds will be disbursed at any time in the near future. However, this is a way for LIGA to tender the maximum amount of money that it would be held liable to pay and to get dismissed from participating in future litigation.
All ASL Property Owners
Do not stop paying your property taxes on ASL related property. ASL properties are being sold at auctions by the City for failing to pay taxes.
Class Counsel
There are four (4) other attorneys who are appointed to serve as Class Counsel. Please feel free to call any of them for more information about this case, or review their firm's websites regarding this case: Joseph Bruno [504-525-1335]; Linda Harang [504-734-2486]; Stephen B. Murray [504-525-8100]; and George Roux [504-568-1112].
When will claims be paid?
At this time, there is no money to distribute. No settlement has been reached with any party. We will not extend any loans to anyone. There has been no determination of who is entitled to receive any money from this case. Clients appear to be confused regarding why you have not been paid. You have not been paid because the Defendants (City of New Orleans, HANO, OPSB and HANO's insurance companies) have never put up any money to pay you, despite losing at trial on the merits. It is not the fault of your attorneys or the Court.
