Reproduced with permission from Class Action Action Litigation Report, Vol. 6, No. 21, pp. 793-795 (Nov 11, 2005). Copyright 2005 by The Bureau of National Affairs, Inc. (800-372-1033). http://www.bna.com Katrina has already spawned a hurricane of lawsuits. These suits include: suits by individuals who claim they were injured by hazardous substances that leaked from storage facilities, refineries, or pipeline facilities; suits by individuals who claim that oilfield production and pipeline activities caused wetland damage that exacerbated the effects of hurricane Katrina; and suits by individuals who claim faulty levees caused the widespread flooding that followed in the days after Katrina made landfall. All of these suits have a common thread: each will require the courts to determine whether the damages sued upon resulted from nature’s fury or human blunder. Louisiana, like many other states, recognizes the general principle that an “act of God” can be a complete defense to liability for negligence and strict liability claims. Louisiana courts have generally used a consistent definition of the term “act of God,” but the application of that definition in the context of a specific event has not always been consistent or clear, particularly when the issue of contributing human fault is at play.
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General Litigation
HB90 – Suspension of Prescription – Update
HB90, dealing with Governor Blanco’s emergency orders suspending prescription, peremption, and legal deadlines, awaits final Senate passage. The Senate Judiciary A Committee adopted amendments which have not yet been incorporated into the latest version of the bill, but which should ultimately be included.
You can (and should) read the bill in its entirety here, together with the amendments by Senate Judiciary Committee A here.
Noteworthy aspects of the bill follow:
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Insurance Coverage for Defective Workmanship
A recent case out of Louisiana could be big news for general contractors, owners, and insurers. Louisiana’s Second Circuit Court of Appeals agreed with a lower court’s opinion that an upstream contractor was entitled to insurance coverage for the cost of repairing defective work performed by a subcontractor (Broadmoor Anderson v. National Union Fire Insurance of Louisiana).
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Proposed Legislation at 2005 First Extraordinary Session
Here are a few of the proposed bills from the House dealing with some of the items on Governor Blanco’s call list:
HB32 – providing for the suspension of performance of contracts due to impracticability of performance.
Continue Reading Proposed Legislation at 2005 First Extraordinary Session
The Lone Pine Order As a Case Management Tool for Complex Litigation
The past twenty years has seen a dramatic increase in the volume of mass tort and other forms of complex litigation. As the volume of litigation has grown, so too have the burdens on the judiciary and the litigants. To address this growing problem, it is imperative that modern adjudicatory tools be adopted to achieve the goal of securing the just, speedy, and inexpensive determination of every action. One such case management tool that has developed in the context of mass tort litigation – but that can be equally effective in other types of litigation – is the Lone Pine Order.
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Louisiana Contracts and the Doctrine of Impossibility
By the Kean Miller Business Law Team
Many businesses in Louisiana are now assessing how Hurricane Katrina and Hurricane Rita have affected and will continue to affect their contracts with clients, vendors, partners, and others. This article provides some general guidelines that businesses can use to determine if and how their contracts’ terms or Louisiana’s commercial law may affect contractual rights and obligations in light of the hurricanes.
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Insurance Claims After Hurricane Katrina
Hurricane Katrina will undoubtedly go down in history as the worst natural disaster to hit the United States. The current estimated cost to repair damage from Hurricane Katrina caused has reached $50.0 billion, much of which may be covered by insurance. Hurricane Katrina will have enormous impact on policyholders and their insurers in Louisiana, Mississippi, and Alabama. Policyholders will need to act carefully and in some cases promptly to protect their rights under insurance policies providing coverage for environmental claims, business interruption claims, property loss claims, and general liability claims.
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United States Eastern District Court Closes Until Further Notice
Per its website at http://www.laed.uscourts.gov, the United States District Court for the Eastern District of Louisiana has closed until further notice, and has suspended “all deadlines and delays in matters pending before this court…until ordered otherwise.”
Sales Tax Refund for Personal Property Destroyed By Natural Disaster
La. R.S. 47:315.1 permits the owner of personal property destroyed by a natural disaster (i.e., one declared by the President to warrant federal assistance) to obtain a sales tax refund under certain circumstances. According to the Louisiana Department of Revenue (http://www.rev.state.la.us/forms/taxforms/1362I(10_02).pdf), a claim can be made for “taxes paid on movables such as clothing, boats, appliances, furniture, etc.,” but not fixed items such as carpeting, cooling systems, etc. You should read the referenced link for more information.
Persons suffering movable property losses must file a claim with the Department using Form 1362 (Natural Disaster Claim for Refund of State Sales Taxes Paid), Form R-1362I (Natural Disaster Claim for Refund – General Information), Form R-1362S (Natural Disaster Claim for Refund – Schedule), and Form R1363 (Refund of State Sales Taxes Paid on Titled Assets). The forms are available from the Department’s website at www.rev.state.la.us under “Tax Forms” and the sub-heading “Sales Tax.”
The full text of the statute follows:
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Consider Modification of Indemnity Agreements in Light of Louisiana Supreme Court Case
In light of the Louisiana Supreme Court’s decision in the Suire case, businesses and industrial concerns may want to consider modification of their indemnity provisions in contracts in order to allow for the litigation of defense and indemnity claims during underlying tort litigation.
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