On July 12, 2021, the United States Court of Appeals for the Fifth Circuit affirmed the dismissal of all claims against Liberty Mutual with prejudice in a case in which the plaintiff alleged economic loss from a 2017 motor vehicle accident and a 2016 flood.
The plaintiff appealed the district court’s full dismissal of her claims and argued that: (1) the trial court erred in denying her Motion to Remand the matter to state court and (2) her claims under Liberty Mutual’s policies of insurance and related alleged bad faith were improperly dismissed following her failure to come forward with evidence to support her claim. See Court Dismisses Bodily Injury and Bad Faith Insurance Claims, discussing the district court’s original MSJ ruling. The Fifth Circuit rejected plaintiff’s claims. In so doing, the court held that Liberty’s homeowners’ Policy unambiguously excluded coverage for flooding and, therefore, plaintiff could not prevail on her flood damage claims. The court further found that the plaintiff had not come forward with competent summary judgment evidence of her bodily injury damages, “and hence could not sustain an essential element of her uninsured motorist claim. Consequently, she also could not maintain a bad faith claim against Liberty.” The court also held that the matter had been properly maintained in federal court.