Higgins v. Allstate Insurance Co

On April 28, 2021, Cynthia Higgins (“Plaintiff”), represented by Catharine Biggs of Long & Long (Mobile), filed a contract lawsuit against Allstate Insurance Company (“Defendant”), seeking monetary damages, for alleged breach of contract and failure to tender adequate insurance claim proceeds which caused contractual, consequential, and tort damages to the Plaintiff. This case was filed in the U.S. District Court for the Western District of Louisiana with Judges James D. Cain, Jr. and Kathleen Kay presiding. 

In its complaint, the Plaintiff alleged that “Plaintiff purchased a Homeowner’s Policy (hereinafter, “the Policy”) from Defendant to insure his home and the contents therein against physical damage by or from wind and hurricane. The Policy was in full force and effect at all relevant times and Plaintiff paid all premiums when due. Hurricane Laura caused substantial damage to the Property. The high winds and debris impacted the roof, roof structure and exterior of the property, and caused several storm created openings that allowed wind, rain, and debris to enter. Once Plaintiff discovered the Property damage, Plaintiff made an immediate claim to Defendant. The Property became uninhabitable during the time reasonably necessary to repair or replace the damaged property. The Defendant failed to pay the necessary additional living expenses which are covered under the Policy.”

The Plaintiff further alleged that “Defendant unfairly and improperly persisted in denying payment on the full amount of Plaintiff’s claim after receiving satisfactory proof of loss. Upon information and belief, Defendant misrepresented to Plaintiff the terms and conditions of the Policy. Upon information and belief, Defendant conducted its loss investigation and claims handling process for Plaintiff in bad faith. Upon information and belief, Defendant conducted its loss investigation and claims handling process for Plaintiff in violation of its obligations under the Policy.”

The Plaintiff lists out two claims for relief in the complaint. The first claim is for alleged breach of contract and it has been claimed by the Plaintiff that despite having received sufficient proof of loss, Defendant failed to timely tender adequate claim payments due under the Policy. Defendant failed to perform and materially breached the insurance contract when it wrongly failed to pay Plaintiff for damages to the property that the Policy covered. The second claim is for alleged violation of La. R.S. §§ 22:1973 and 22:1892 and it has been claimed by the Plaintiff that the Defendant’s failure to promptly, fairly and fully investigate Plaintiff for the covered losses under the Policy was arbitrary, capricious, and without probable cause and Defendant’s failure to pay timely for damages Defendant knew or should have known existed—after Defendant’s initial inspection of the Property and after Defendant received Plaintiff’s proof of loss and estimate of damages—was in violation of La. R.S. §§ 22:1892 and 22:1973.

In its prayer for relief, the Plaintiff requested the Court to deliver judgment for such amounts as Plaintiff may prove at trial by jury, including the full amount of the building property damage at Replacement Cost Value; reimbursement for additional living expenses; all actual and consequential damages; applicable penalties under La. R.S. § 22:1892 and La. R.S. § 1973, along with all attorney fees and litigation expenses.

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