Material Issues Of Fact Preclude Summary Judgment That Insurer Waived Or Was Estopped From Asserting Coverage Defenses

The United States District Court for the Western District of Louisiana, applying Louisiana law, has held that material issues of fact precluded summary judgment that an insurer waived or was equitably estopped from raising coverage defenses. Landmark Am. Ins. Co. v. Esters, No. 20-1263, 2022 WL 1720381 (W.D. La. April 29, 2022).

The insurer issued a liability policy to the insured, an insurance agency. After a hurricane caused significant property damage, many customers of the insured reported losses and sought to recover under their respective insurance policies. The insured subsequently learned that many customers did not have adequate insurance coverage in place to cover the claimed losses on account of certain acts and omissions undertaken by its employee and provided notice to its liability insurer.