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New Orleans court backs insurers on BI

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A New Orleans court has ruled in favour of insurers in a business interruption case brought by a local restaurant against Lloyd’s underwriters.

The case pursued by Cajun Conti is the first to make it to trial amid a raft of preliminary judgments across the country that have been determined in favour of insurers.

Parties made submissions to the Civil District Court for the Parish of Orleans from December 14-16, with Judge Paulette R. Irons on February 10 denying a petition for declaratory relief. The judgment did not include reasons.

“The motion, brought by well-known class action attorney John Houghtaling II, joins a pool of nationwide rulings that have been overwhelmingly decided in favour of insurers,” the Insurance Information Institute said last week.

“As in many similar cases, the ruling came down to the physical damage requirement present in most BI policies.”