Case 2:22-cv-00689-JTM-DPC Document 1 Filed 03/16/22 Page 1 of 5
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`UNITED STATES DISTRICT COURT
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`EASTERN DISTRICT OF LOUISIANA
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`CIVIL ACTION NO:
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`HOSPITAL SERVICE DISTRICT No. 1
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`OF TERREBONNE PARISH
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`VERSUS
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`HARTFORD FIRE INSURANCE
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`COMPANY
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`COMPLAINT
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`JUDGE:
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`MAG. JUDGE:
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`Hospital Service District No. 1 of Terrebonne Parish, also known as Terrebonne General
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`Health System, and formerly known as Terrebonne General Medical Center (“TGHS”), for its
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`complaint against Hartford Fire Insurance Company (“The Hartford”), alleges as follows:
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`PARTIES
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`1.
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`2.
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`The plaintiff, TGHS, is a political subdivision of the State of Louisiana.
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`Made defendant is The Hartford, a Connecticut corporation with a Connecticut
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`principal place of business. The Hartford conducts business in the State of Louisiana.
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`JURISDICTION AND VENUE
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`3.
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`This Court has subject matter jurisdiction over this matter pursuant to 28 U.S.C. §
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`1332 because the amount in controversy exceeds $75,000, exclusive of interest and costs, and this
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`action is between citizens of different states.
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`4.
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`This Court has personal jurisdiction over the The Hartford because it is authorized
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`to sell or write insurance in Louisiana and, at all material times, has conducted substantial
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`1
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`UNITED STATES DISTRICT COURT
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`EASTERN DISTRICT OF LOUISIANA
`
`
`CIVIL ACTION NO:
`
`*
`HOSPITAL SERVICE DISTRICT No. 1
`*
`OF TERREBONNE PARISH
`*
`
`*
`
`*
`VERSUS
`*
`
`*
`
`*
`HARTFORD FIRE INSURANCE
`*
`COMPANY
`*
`
`* * * * * * * * * * * * * * * * * * * * * *
`COMPLAINT
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`JUDGE:
`
`MAG. JUDGE:
`
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`
`
`
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`
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`Hospital Service District No. 1 of Terrebonne Parish, also known as Terrebonne General
`
`Health System, and formerly known as Terrebonne General Medical Center (“TGHS”), for its
`
`complaint against Hartford Fire Insurance Company (“The Hartford”), alleges as follows:
`
`PARTIES
`
`1.
`
`2.
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`The plaintiff, TGHS, is a political subdivision of the State of Louisiana.
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`Made defendant is The Hartford, a Connecticut corporation with a Connecticut
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`principal place of business. The Hartford conducts business in the State of Louisiana.
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`JURISDICTION AND VENUE
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`3.
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`This Court has subject matter jurisdiction over this matter pursuant to 28 U.S.C. §
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`1332 because the amount in controversy exceeds $75,000, exclusive of interest and costs, and this
`
`action is between citizens of different states.
`
`4.
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`This Court has personal jurisdiction over the The Hartford because it is authorized
`
`to sell or write insurance in Louisiana and, at all material times, has conducted substantial
`
`
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`1
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`Case 2:22-cv-00689-JTM-DPC Document 1 Filed 03/16/22 Page 2 of 5
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`insurance business in Louisiana, including engaging in the business of selling insurance that covers
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`policyholders and activities located in Louisiana.
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`5.
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`Venue is proper in this District pursuant to 28 U.S.C. § 1391 because The Hartford
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`is subject to personal jurisdiction in this District and a substantial part of the events or omissions
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`giving rise to the claims occurred in this District.
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`FACTUAL BACKGROUND
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`6.
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`The Hartford sold policy No. 46 UFG ZX0065 to TGHS for the policy period April
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`1, 2019 to April 1, 2020 (the “Policy”).
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`7.
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`8.
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`The Hartford delivered the Policy to TGHS in Houma.
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`The Policy includes an endorsement called “Additional Coverage Extensions for
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`Healthcare” that provides coverage for Communicable Disease Contamination.
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`9.
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`The Communicable Disease Contamination coverage applies “[w]hen a
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`governmental health authority having jurisdiction over the ‘Insured Premises’ has issued an order
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`regarding an outbreak of a specific communicable disease at an ‘Insured Premises.’”
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`10.
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`The coverage pays for “[t]he actual costs that [the insured] incur[s] to clean up,
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`remove, restore, or replace contaminated Covered Property when required by the order due to the
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`presence of a specific communicable disease at an ‘Insured Premises’” as well as “the actual loss
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`of Business Income or Rental Income [the insured] sustain[s] due to the actual impairment of [the
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`insured’s] operations from the requirements of the order during the Period of Restoration at an
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`‘Insured Premises.’” The Period of Restoration begins “24 hours following the date [the insured]
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`begin[s] to clean up, remove, restore or replace contaminated Covered Property” and ends on the
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`“date [the insured] could restore [its] business operations” to pre-loss levels.
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`2
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`Case 2:22-cv-00689-JTM-DPC Document 1 Filed 03/16/22 Page 3 of 5
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`11.
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`A “communicable disease” means one that “[m]ay be transmitted directly or
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`indirectly by one person or other life form to another; and . . . is due to . . . [a]n infectious agent; or
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`. . . [a] toxic product produced by such infectious agent.” COVID-19 is a communicable disease
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`under the Policy.
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`12.
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`The Louisiana Department of Health (“LDH”) is a “governmental health
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`authority having jurisdiction over the ‘Insured Premises.’” The LDH issued an order on March
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`18, 2020 that required TGHS to cease non-emergency medical procedures (the “LDH Order”).
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`13.
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`The LDH has made clear that its order requiring cessation of non-emergency
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`medical procedures was “a result of . . . [COVID-19] outbreaks at Louisiana hospitals, including
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`Terrebonne General Medical Center.” (Emphasis added.)
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`14.
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`TGHS suffered an actual loss of income due to the impairment of its operations
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`including, but not limited to, the cessation of non-emergency medical procedures caused by
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`compliance with the requirements of the LDH Order.
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`15.
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`TGHS is an “Insured Premises” under the Policy.
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`16.
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`TGHS made a claim under the Policy on April 15, 2020 for covered business
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`interruption and contamination remediation losses following an outbreak of COVID-19 at TGHS
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`and the ensuing LDH Order.
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`17.
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`The Hartford denied the claim in May 2020. The Hartford refused to change its
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`coverage position despite multiple explanations. The Hartford incorrectly premised its denial on
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`the LDH Order not being an order in response to an outbreak at an Insured Premises and not
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`requiring specific cleanup measures.
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`3
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`Case 2:22-cv-00689-JTM-DPC Document 1 Filed 03/16/22 Page 4 of 5
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`CLAIMS
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`Breach of Contract
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`18.
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`The allegations in Paragraphs 1-17 are incorporated herein by reference.
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`19.
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`The Hartford was and is required to indemnify TGHS for all losses resulting from
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`the LDH Order to the extent consistent with the Policy.
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`20.
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`The Hartford wrongfully denied coverage to TGHS for losses resulting from the
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`LDH Order in breach of the Policy.
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`21.
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`As a direct and proximate result of The Hartford’s breach of the Policy, TGHS has
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`suffered and will continue to suffer monetary damages to be determined at trial.
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`Breach of Certain Provisions of Title 22
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`22.
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`The allegations in Paragraphs 1-21 are incorporated herein by reference.
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`23.
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`By arbitrarily and capriciously failing to timely pay the claim without a reasonable
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`basis to do so, The Hartford violated La. R.S. §§ 22:1973 and 1892.
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`24.
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`Consequently, TGHS is entitled to penalties, attorneys’ fees, and any other relief
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`allowed in those statutes.
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`WHEREFORE, Plaintiff, TGHS, prays:
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`1)
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`That after due proceedings, judgment be rendered in TGHS’s favor and against
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`The Hartford for the damages detailed herein as a result of The Hartford’s
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`wrongful denial of coverage;
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`For all costs of these proceedings;
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`For bad-faith penalties, pre- and post-judgment interest, and attorneys’ fees; and
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`4
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`2)
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`3)
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`Case 2:22-cv-00689-JTM-DPC Document 1 Filed 03/16/22 Page 5 of 5
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`4)
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`For all equitable and general relief to which TGHS may be entitled, under any
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`theory whatsoever, including for any and all damages flowing from The Hartford’s
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`conduct, whether pled or not.
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`Respectfully submitted,
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`/s/ Harold J. Flanagan_______________
`Harold J. Flanagan (#24091)
`Laurent J. Demosthenidy (#30473)
`Gabrielle A. Ball (#39111)
`FLANAGAN PARTNERS LLP
`201 St. Charles Ave., Suite 3300
`New Orleans, LA 70170
`Telephone: (504) 569-0235
`Facsimile: (504) 592-0251
`hflanagan@flanaganpartners.com
`ljd@flanaganpartners.com
`gball@flanaganpartners.com
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`Attorneys for Plaintiff, Hospital Service District No. 1 of
`Terrebonne Parish
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