Louisiana’s Citizens Property Insurance Corporation, a state-run insurance group that accounts for the majority of the state’s insurance policies, has filed an emergency application for stay to the U.S. Supreme Court. The insurer is looking to bar further seizures from a 2009 class-action case that saw more than $90 million returned to consumers. The stay application, which was filed on Monday of this week, argues that the Louisiana Supreme Court violated the insurer’s right of due process by prohibiting the organization from mounting an appropriate defense during the litigation.
The Louisiana Supreme Court ruled that Citizens was at fault after finding that the insurer had broken state laws by waiting longer than 30 days before adjusting claims associated with hurricanes. The delay stopped homeowners from making repairs to their properties, which quickly became a costly problem. While the insurers own records show proof that it had broken the state’s laws, the company claims that it was not given a fair trial and is looking to the U.S. Supreme Court to repeal the 2009 ruling.
The Supreme Court receives thousands of applications each year. Only a small number of these applications actually make their way to the Court’s Justices. Citizens’ application will be competing with those concerning federal and constitutional issues that are likely to take priority. The insurer may have to wait a year or more before it finds out whether the Supreme Court will take the case or not.
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