Insurance Coverage - Property Dispute - Appeal

Mr. McReynolds successfully defended Travelers in a coverage dispute with the Fair Grounds arising out of a fire at the Fair Grounds race track in December of 1993. Fair Grounds was claiming blanket coverage under a property policy and sought coverage and payment for an additional $18 million under the policy. The court found that the policy was a scheduled policy, denied the bulk of the Fair Grounds’ claims for additional money, but awarded the Fair Grounds $2.4 million in additional compensation for loss of business income. The Fifth Circuit reversed the BI award on appeal. The decision clarifies the jurisprudence on law of agency, blanket and scheduled coverage, and the proper application of Louisiana’s Entire Policy Statute, R.S. 22:628.
Fair Grounds Corporation v. Travelers Indemnity Company of Illinois, et al, No. 99-301 (La. App. 5 Cir. 09/28/99), 742 So.2d 1069, 1999 La. App. Lexis 2650, writ den’d, 99-3280 (La. 1/28/00), 753 So.2d 831.