Article: Supreme Court rejects Katrina victims' flood insurance case, state court poised to tackle

The nation's highest court dealt a blow Tuesday to property owners who want insurance companies to pay for damage from levee breaches after Hurricane Katrina, but the Louisiana Supreme Court is poised to tackle the issue later this month.

The U.S. Supreme Court declined to hear appeals from Xavier University and dozens of other Louisiana policyholders who sued several insurers for refusing to cover water damage from the levee breaches that flooded 80 percent of New Orleans following the August 2005 hurricane.

The plaintiffs were asking the justices to review portions of an August 2007 ruling by the 5th U.S. Circuit Court of Appeals in New Orleans that insurers are not ...

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