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Will insurers dodge Katrina and Rita?
J. Craig Williams wonders aloud in a post that foreshadows the pain of litigation to come. He writes:
"Is the damage to homes from wind, rain or flood? The damage for many homes in Louisiana and other areas affected by Katrina may be from floods. But what caused the flood? To really answer that question, we have to dig into the tort bag of definitions for the terms proximate cause, concurrent cause, principal cause and other exclusions. In short, and generally, proximate cause means the actual event that set another series of events in motion. Concurrent cause means two causes, virtually at the same time, that caused the damage. Principal cause is the choice of one cause from an evaluation of multiple events that caused damage. Which one applies to damage from hurricanes is an open question. Did the wind and rain cause the floods? Did the storm surge? Did the negligence of the government in maintaining the dikes cause the flooding? Even if you have this answer, the analysis isn't finished ..."
Posted by Product Team on September 23, 2005 at 01:51 PM | Permalink
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