This is the case of La Place Beauty Inc. v. AmGUARD Insurance Co., in the U.S. District Court for the Eastern District of Louisiana.
On Thursday, a cosmetics shop in Louisiana filed a lawsuit against AmGuard Insurance Company in federal court, claiming that the insurer made a predetermined, bad-faith decision to deny the store’s damage claim caused by Hurricane Ida.
Relevant Factual Background
In August 2021, Hurricane Ida made landfall near Port Fourchon, Louisiana, devastating the town of Grand Isle, and causing widespread destruction that resulted in power outages throughout the city. La Place Beauty Market sustained significant property damage during the storm.
The property was covered under a policy that was issued by AmGuard. The policy was effective during the period of February 10, 2021, through February 10, 2022, which covered the date of the incident.
The Plaintiff’s Argument
According to the complaint, Plaintiff accuses AmGuard of wrongfully refusing to pay on its claim for storm damage. The plaintiff claims AmGuard blamed the damage on what it called “preexisting deterioration,” which the store argues is nothing more than AmGuard’s attempt to avoid coverage.
