August 13, 2025
ShareKelley Kronenberg Secures Zero-Dollar Resolution in Hurricane Ida Case in Louisiana
Kelley Kronenberg Partner/Business Unit Leader Jeanne Arceneaux secured a complete victory for Allied Trust Insurance Company in federal court, obtaining dismissal of a Hurricane Ida claim with no payment.
The case involved a Hurricane Ida property damage claim where the plaintiff sought contractual damages and pursued additional bad faith claims against Allied Trust. The plaintiff had initially demanded nearly 6-figures to resolve the matter, significantly exceeding the potential contractual exposure.
Rather than focusing solely on the merits of the damage claims, Jeanne conducted a thorough investigation into the underlying policy relationship. Her diligent review uncovered material misrepresentations made by the insured on the original policy application.
Armed with this critical evidence, Jeanne shifted the litigation dynamics entirely. The discovery of material misrepresentations provided Allied Trust with a complete defense to coverage, fundamentally undermining the plaintiff’s entire case.
Jeanne leveraged this discovery through strategic negotiations, demonstrating to opposing counsel that their client’s misrepresentations voided any obligation under the policy. Rather than face the exposure of having the misrepresentations proven in court, the plaintiff agreed to dismiss all claims against Allied Trust with no payment.
The negotiated resolution completely eliminated Allied Trust’s exposure to both the contractual claim and the potential bad faith penalties and attorney’s fees that had significantly amplified the risk.
This outcome demonstrates the critical importance of thorough underwriting file review in insurance defense and highlights how investigative diligence can uncover dispositive defenses that completely transform case dynamics. The zero-dollar resolution not only protected Allied Trust from substantial financial exposure but also avoided the costs and uncertainty of protracted federal litigation.
Special recognition goes to Complex Claims Adjuster Paula Maisel and the entire team at Allied Trust Insurance Company for their collaborative approach in achieving this excellent result.
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