Judge Issues Stay In Hurricane Ida Coverage Dispute Against Insolvent Insurer

Mealey's (October 10, 2022, 1:57 PM EDT) -- NEW ORLEANS — An insurance coverage dispute related to Hurricane Ida is stayed and administratively closed for six months, a Louisiana federal judge ruled in an order signed Oct. 7 and docketed Oct. 9, finding that pursuant to Louisiana law and a Fifth Circuit U.S. Court of Appeals decision,  proceedings involving an insolvent insurer in federal court shall be stayed to prevent a federal court claimant from preempting other parties in the state court’s asset distribution in the liquidation proceeding....