Strauss, Burns Successfully Defend National Insurer

February 3, 2012

In the U.S. District Court for the Middle District of Louisiana, following a jury trial on the merits, David Strauss and Brent Burns successfully defended State Farm Fire and Casualty Company’s denial of coverage under a commercial insurance policy and obtained a dismissal of the Plaintiff’s suit at the Plaintiff’s cost.

The Plaintiffs, owners of an Athlete’s Foot retail store, asserted that their business was looted during Hurricane Gustav, and that they suffered an inventory loss of almost  $60,000. They also sought recovery of building damage and approximately $250,000 in loss of business income and related damages which purportedly resulted from the insurer’s claim denial. The Plaintiff also sought bad faith penalties. At trial, State Farm took the position that no theft actually occurred, and that the Plaintiff engaged business practices so unusual that the Plaintiff could not establish a legitimate loss. The jury agreed, and found the Plaintiff did not prove it sustained a theft loss or building damage due to actual or attempted theft to its store.  Prior to the trial, Strauss and Burns were also successful in excluding the Plaintiff’s public adjuster and bad faith expert through a motion in limine under the principles of Daubert.

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