504. Interpreting Provisions. Richard Vanderbrooks home in New Orleans, Louisiana, was insured through Unitrin Preferred Insurance Company. His policy excluded coverage for flood, surface water, waves, tidal water, over-flow of a body of water, or spray from any of these, whether or not driven by wind. The policy did not define the term flood. In 2005, Hurricane Katrina struck along the coast of the Gulf of Mexico, devastating portions of Louisiana. In New Orleans, some of the most significant damage occurred when the levees along three canals ruptured, and water submerged about 80 percent of the city, including Vanderbrooks home. He filed a claim for the loss, but Unitrin refused to pay. Vanderbrook and others whose policies contained similar
exclusions asked a federal district court to order their insur-ers to pay. They contended that their losses were due to the negligent design, construction, and maintenance of the levees. They argued that the policies did not clearly exclude coverage for an inundation of water induced by negligence. On what does a decision in this case hinge? What reasoning supports a ruling in the plaintiffs favor? In the defendants favor? [In re Katrina Canal Breaches Litigation, 495 F.3d 191 (5th Cir. 2007)] (See The Insurance Contract.)
