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Article Excerpt
The Fifth Circuit has ruled that a Gulf Coast homeowner is entitled to damages for emotional anguish after his insurance company dragged its feet paying for repairs to his home, ravaged by Hurricane Katrina.
In ruling on a long-contentious question of whether Louisiana law permits damages for emotional distress in a bad-faith insurance case, the court found that a state statute "is broadly worded, explicitly permitting liability for 'any damages sustained,' including, without limitation, 'any general or special damages.'" (Dickerson v. Lexington Ins. Co., 2009 WL 130207 (5th Cir. Jan. 21, 2009).)
In August 2005, the massive hurricane tore a hole in the roof of Dale Dickerson's home in Marrero, Louisiana. Rainwater filled it to the second floor, and flooding completed the devastation.
Because the house was unlivable, Dickerson and his wife, Shirley, moved into the showroom...
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