Lack of Prompt Notice of Loss Defeats Coverage

Breach of Contract Suit After Untimely Notice of Loss
Post 5061

Failure to Timely Report Claims and Show that Foremost Breached the Policy or Acted in Bad Faith Requires Dismissal.

In Chester Armond v. Foremost Insurance Co. Grand Rapids Michigan, Civil Action No. 22-4291, United States District Court, W.D. Louisiana, Alexandria Division (December 9, 2024) resolved a motion for summary judgment in favor of an insurer.

BACKGROUND

The case arises from an insurance claim for damages to the plaintiff's property, allegedly caused by Hurricane Laura and Hurricane Delta. Foremost issued an insurance policy to Chester Armond for his residential property located in Cottonport, Louisiana. The policy required the insured to notify Foremost promptly in the event of a loss and to protect the property from further damage. Foremost's first notice of the claimed loss was received nearly two years after Hurricane Laura.

CLAIMS

Armond filed a lawsuit against Foremost alleging:

Breach of the insurance policy by failing to perform its obligations .
Violation of Louisiana Revised Statute 22:1973 for refusing to pay after receiving satisfactory proof of loss
Violation of Louisiana Revised Statute 22:1892 for failing to pay or make a written offer to settle the claim.
FOREMOST'S DEFENSE

Foremost argued that Armond failed to timely report his claims and did not comply with the policy. Foremost also stated that they had no evidence to establish that they were contractually obligated to Armond for the losses claimed.

COURT'S DECISION

The court granted Foremost's motion for summary judgment, dismissing all of Armond's claims. The court found that Armond failed to produce evidence of timely reporting the claims and did not show that Foremost breached the policy or acted in bad faith.

The court ultimately granted Foremost's motion for summary judgment, dismissing all of Armond's claims.

Foremost never received notice of the alleged damage caused by Hurricane Delta prior to the lawsuit, and Foremost's first notice of the claimed loss caused by Hurricane Laura was one week prior to the filing of this lawsuit. The Court concluded that no genuine dispute existed as to whether Foremost violated the statute, and summary dismissal of the claims are warranted.

Foremost's motion for summary judgment was granted. All of Armond's claims against Foremost were dismissed.

ZALMA OPINION

Insurance is a contract which includes conditions that must be complied with to obtain indemnity from the insurer. Mr. Armond waited two years after allegedly incurring damage from a Hurricane, to report it to her insurer and, preventing the insurer from investigating a claim by filing suit one week after giving notice. Rather than proving the insurer breached the contract Mr. Armond established by her actions proved she was in breach of the contract.

(c) 2025 Barry Zalma & ClaimSchool, Inc.

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