Recent Development by G. Scott Binnings
Hurricane Katrina swept ashore along the border of Louisiana and Mississippi on August 29, 2005, swallowing miles of coastline under a massive surge of water, ripping structures apart with howling winds, and submerging much of the City of New Orleans under toxic floodwater. Nearly a month later, Hurricane Rita struck the border of Louisiana and Texas, inundating the cities and fragile wetlands of Southwest Louisiana. Ultimately, the residents of the Gulf Coast suffered staggering human and property losses from the overwhelming force of nature and ensuing human chaos. With hundreds of thousands of citizens scattered across the United States, Louisiana leaders began the daunting task of anticipating and resolving the legal issues stemming from the unprecedented disruption.
In late June 2006, the Louisiana legislature passed Acts 739 and 802 to extend for one year the prescriptive period under which claimants must file a claim against an insurance carrier for losses sustained by Hurricanes Katrina and Rita. Pursuant to the statutes, Louisiana's attorney general sought to establish the constitutionality of the Acts by declaratory judgment, filed July 10, 2006. The suit named all insurance carriers licensed to do business in Louisiana as defendants. All but three carriers voluntarily agreed to comply and were dismissed from the suit.
On August 22, 2006, in response to a writ on behalf of the attorney general seeking immediate judgment in anticipation of the running of most prescriptive periods on the one-year anniversary of Hurricane Katrina, the Louisiana Supreme Court directed the case to the district court for an expedited hearing. On August 23, the district court ruled the Acts constitutional. Immediately thereafter, the Louisiana Supreme Court announced it would exercise its supervisory authority and rule on the constitutionality of the statutes, directing the parties to file briefs the following day by 4:00 p.m. The court issued its judgment the next day, August 25, 2006, shortly following oral arguments that morning.
The Louisiana Supreme Court unanimously held that Louisiana Acts 739 and 802, which extend the prescriptive period under which a policyholder must initiate a claim against his or her insurance carrier for damage arising out of Hurricanes Katrina and Rita, do not violate the contract clauses of the United States or Louisiana Constitutions. State v. All Property & Casualty Insurance Carriers, 06-2030 (La. 8/25/06); 937 So. 2d 313.
About the Author
G. Scott Binnings. J.D. candidate 2008, Tulane University School of Law; A.B. 2005, College of William and Mary.
Citation
81 Tul. L. Rev. 1345 (2007)