Keiland Construction L L C v. BXS Insurance Inc et al
MEMORANDUM RULING re 27 MOTION for Partial Summary Judgment filed by B X S Insurance Inc. Signed by Judge James D Cain, Jr on 9/19/2022. (crt,Benoit, T)
Case 2:21-cv-02062-JDC-KK Document 31 Filed 09/19/22 Page 1 of 4 PageID #: 530
UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF LOUISIANA
LAKE CHARLES DIVISION
KEILAND CONSTRUCTION L L C
CASE NO. 2:21-CV-02062
JUDGE JAMES D. CAIN, JR.
B X S INSURANCE INC ET AL
MAGISTRATE JUDGE KAY
Before the Court is a “BXS Insurance, Inc.’s Motion for Partial Summary Judgment
on Plaintiff’s Claims for Penalties and Attorneys’ Fees” (Doc. 27) wherein Defendant BXS
Insurance, Inc. (‘BXS”) moves to dismiss Plaintiff, Keiland Construction, LLC’s
(“Keiland”) claims for penalties and attorney fees.
Keiland owns the following various properties in Lake Charles, Louisiana: (1) 600
Bayou Pines East; (2) 745 Bayou Pines East; (3) 1102 2nd Street; and (4) 1469 West
Lincoln Road. 1 During the relevant time period, BXS was Keiland’s “agent” or “broker”
for insurance. 2
XL Specialty Insurance Company (“XL”) issued XL Policy Number
UM00062747MA20A (the “Policy”), naming Keiland as the “insured.” BXS was named
as the “agency or broker.” 3
The Policy described the Keiland properties as follows:
Defendant’s exhibit 1, Keith DeRousseau deposition, pp.16:15-18:14.
Defendant’s exhibit 3, Complaint, ¶ ¶ 2, 8, 9, and 10. Doc. 1.
Defendant’s exhibit 4, pp. 1, 2, 13. Defendant’s exhibit 5, DeRousseau deposition, pp. 33:22-35:14.
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1102 2nd St.
Lake Charles, La
600 Bayou Pines E,
Lake Charles, La
1469 West Lincoln
Lake Charles, La.
745 Bayou Pines East
Lake Charles, La.
On August 27, 2020, Hurricane Laura struck Lake Charles and caused damages to
Keiland’s properties in Lake Charles. On September 11, 2020, Keiland called BXS to
obtain a copy of the Policy. 4 On that same day, BXS emailed Keiland a full description of
the errors alleged by Keiland in this case: Keiland’s properties at 600 and 745 Bayou Pines
were not covered by the Policy as requested.
XL denied coverage of Keiland’s claims for damages to 600 Bayou Pines and 745
Bayou Pines because those properties were not covered by the Policy at the time of
Hurricane Laura. 5 XL placed coverage for 600 Bayou Pines and 745 Bayou Pines effective
August 31, 2020. 6
Defendant’s exhibit 5, DeRousseau depo. p. 37:9-38:9.
Doc. 20-1, 9. 4.
Doc. 20-7, p. 149-150.
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LAW AND ANALYSIS
Even though BXS was not the insurer, it attempted to resolve the dispute with
Keiland by offering to compensate Keiland for its losses. 7 BXS asserts that it was not
offering those amounts as an insurance company or an insurer. 8
In this lawsuit, Keiland seeks recovery against BXS for damages to 600 Bayou Pines
and 745 Bayou Pines as a result of Hurricane Laura. 9 Keiland seeks recovery against XL
for the properties located at 1102 2nd Street and 1469 West Lincoln Road for Hurricane
Laura and coverage for all four buildings (600 Bayou Pines, 745 Bayou Pines, 1102 2nd
Street and 1469 West Lincoln Road) for Hurricane Delta. 10
On June 23, 2022, XL Insurance filed a motion for summary judgment seeking a
dismissal with prejudice as to the 600 Bayou Pines and 745 Bayou Pines property coverage
claims on the basis that any failure to obtain coverage would not be imputed to XL
Insurance. 11 Keiland did not file an opposition but filed a Rule 41(A)(2) dismissal 12 with
prejudice as to the claims against XL, which this Court granted. 13
BXS seeks summary judgment to dismiss Keiland’s claims of penalties and attorney
fees. BXS contends that because it is not an insurer, but is a broker or agent, it cannot be
liable for penalties and attorney fees under Louisiana Revised Statutes §§ 22:1892 and
22:1973. BXS argues that these penalty statutes govern the relationship between an insurer
Defendant’s exhibit 3, Complaint at ¶ ¶ 16-18, Doc. 1.
Answer, Doc. 11, ¶ ¶ 2, 9, 21-23, Second and Third Affirmative Defense.
Defendant’s exhibit 6, Keiland’s Responses to Requests for Admissions, Response to request No. 1.
Defendant’s exhibit 5, pp. 47:12-48:25, 50:10-15.
Doc. 20-1, p.1.
Doc. No. 25.
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and its insured and are not applicable to any claim for breach of duty by an insurance
broker. Thus, these statutes do not apply to BXS because BXS is in the business of
brokering insurance policies, and the relationship between BXS and Keiland is not that of
BXS has filed a “Notice of Non-Opposition to BXSI’s Motion for Partial Summary
Judgment” (Doc. 11). BXS notes that Keiland has filed no opposition to its Motion and the
time for doing so has now lapsed. The Court agrees. A Notice of Motion Setting was issued
setting the deadline for opposition to fourteen (14) days after service of the motion. 14 The
Motion was served on August 31, 2022, when filed and an electronic notice was sent out
on August 31, 2022, at 4:43 PM CDT. 15
Based on the foregoing, the Motion for Partial Summary Judgment on Plaintiff’s
Claims for Penalties and Attorneys’ Fees (Doc. 27) will be granted dismissing with
prejudice Plaintiff, Keiland Construction, LLC’s (“Keiland”) claims for penalties and
attorney fees against Defendant.
THUS DONE AND SIGNED in Chambers this 19th day of September, 2022.
JAMES D. CAIN, JR.
UNITED STATES DISTRICT JUDGE
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