10 Insurance Giants Lose Bid to Arbitrate Charter School’s Hurricane Damage

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USA Herald – This is the case of Friends of Young Audiences Charter Association v. Certain Underwriters at Lloyd’s London et al., in the U.S. District Court for the Eastern District of Louisiana.

Young Audiences Charter Schools is an art-integrated public charter school serving Orleans and Jefferson Parishes. In August 2022, the school sued the insurers in state court, requesting coverage for hurricane Ida’s damage to its property in Louisiana and penalties under Louisiana law for bad faith.

Recently, a federal judge in Louisiana tossed out a group of 10 insurers’ effort to compel the charter school into arbitration to resolve it’s Hurricane Ida claims, finding the case was already bound by the court’s mandatory settlement process and adjudication.

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The insurers who are represented by James A. Prather, Jason M. Freas, Joshua H. Dierker, Pamela B. Gautier, Greg C. Fuxan, and Margaret M. Guidry of Galloway Johnson Tompkins Burr & Smith APLC, argued that arbitration was the proper venue for this case, but the court disagreed.