Howell-Douglas v. Fidelity National Indemnity Insurance

Citations: 24 F. Supp. 3d 579; 2014 U.S. Dist. LEXIS 75469; 2014 WL 2506469Docket: Civil Action No. 13-5578

Court: District Court, E.D. Louisiana; June 3, 2014; Federal District Court

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Defendant Fidelity National Indemnity Insurance Company successfully moved for summary judgment, leading to the dismissal of plaintiff Janina Howell-Douglas's case. The court found that the plaintiff did not submit a timely signed and sworn Proof of Loss for the insurance proceeds claimed. Furthermore, the court determined that the National Flood Insurance Act does not allow for extra-contractual claims. Howell-Douglas, a homeowner from La-Place, Louisiana, had purchased a Standard Flood Insurance Policy (SFIP) through the National Flood Insurance Program, which is overseen by FEMA. Following flood damage from Hurricane Isaac in August 2012, she filed multiple Proofs of Loss, totaling $107,572.39, which were fully paid by Fidelity National. However, she did not submit any further signed and sworn Proof of Loss after these payments. In her lawsuit filed on August 27, 2013, she claimed breach of contract and extra-contractual claims against Fidelity National, including allegations of underpayment and negligence. The court noted that Howell-Douglas did not respond to Fidelity National's motion for summary judgment. The legal standard for granting summary judgment requires that there be no genuine dispute of material fact, which the court found applicable in this case.

The nonmoving party can counter a motion for summary judgment by presenting evidence that establishes a genuine dispute of material fact or by demonstrating that the moving party's evidence is insufficient to convince a reasonable fact-finder. If the nonmoving party has the burden of proof at trial regarding the dispositive issue, the moving party can fulfill its burden by highlighting the lack of evidence for an essential element of the nonmoving party's claim. Consequently, the burden shifts to the nonmoving party to submit specific facts indicating a genuine issue exists, rather than relying solely on pleadings. Summary judgment is mandated against a party that fails to show the existence of an essential element of their case after adequate discovery.

The Standard Flood Insurance Policy (SFIP) requires insured parties to send a proof of loss within 60 days after a flood loss, detailing the claim amount and providing specific information. Legal action cannot be initiated under the policy unless all requirements are met, including commencing suit within one year of a written denial of the claim, in the appropriate U.S. District Court. Courts strictly interpret SFIP provisions; failure to submit a complete and sworn proof of loss relieves the federal insurer of its obligation to pay a potentially valid claim. A National Flood Insurance Program (NFIP) participant must demonstrate prior compliance with all policy requirements, including the proof of loss requirement, to pursue federal benefits under the SFIP. Additionally, a proof of loss is necessary for any supplemental claims beyond initial disbursements made by the insurer.

FEMA extended the deadline for submitting proof of loss for Hurricane Isaac claims to April 28, 2013. The affidavit from Jeffrey Moore, vice-president of claims for Wright National Flood Insurance Company, indicated that the plaintiff failed to submit a signed and sworn Proof of Loss exceeding the initial payment made by Fidelity National. The absence of this proof was deemed critical to the plaintiff's flood damage claim. Furthermore, the court asserted that all extra-contractual claims by the plaintiff must be dismissed, as FEMA regulations under the National Flood Insurance Act of 1968 govern disputes related to claims handled by Write Your Own (WYO) insurers, preempting state law tort claims. The Fifth Circuit has established that the NFIA does not allow extra-contractual claims against WYO insurers based on federal common law. Thus, insured parties under Standard Flood Insurance Policies (SFIP) can only pursue breach of contract claims for nonpayment. Since the plaintiff's lawsuit exclusively relied on her claim under a standard policy issued by Fidelity National, any state law or extra-contractual claims were prohibited. Consequently, the court granted Fidelity National’s motion for summary judgment, dismissing the plaintiff's claims with prejudice.