Fifth Circuit Panel Finds Court Erred In Assessing Bad Faith Penalties, Reverses In Part (Briefs Available to Subscribers)

NEW ORLEANS - A lower federal court erred in imposing bad faith statutory penalties against an insurer because it was not arbitrary or lacking probable cause to believe that a policy excluded lost business income resulting from Hurricane Katrina flooding in other buildings, the Fifth Circuit U.S. Court of Appeals held July 20, reversing in part (Berk-Cohen Associates LLC v. Landmark American Insurance Company, No. 10-30916, 5th Cir.). Full story on lexis.com