Image: HOLLYN JOHNSON/Tribune-Herald
Attorney gives update on Lloyd’s of London lawsuits
News Source: Hawaii Tribune-Herald
HILO, Hawaii, May 6, 2019 (Hawaii Tribune-Herald) —
Jeffrey Foster, a Kona attorney, is representing the majority of the plaintiffs in nearly 50 cases filed against Lloyd’s of London, its agents, brokers, and adjusters on behalf of lower Puna residents whose homes were lost during the 2018 eruption of Kilauea volcano. These cases allege breach of implied covenant of good faith and fair dealing, and conspiracy to sell surplus or excess lines of insurance when other options were available to homeowners.
Lloyd’s, a non-admitted insurer in Hawaii, can write coverage through an excess or surplus line broker licensed in the state. Many of the policies sold under Lloyd’s banner have a “lava exclusion,” which excludes coverage for homes inundated by lava unless homeowners can prove their home was taken by fire prior to the arrival of lava.
Foster praised the Hawaii Property Insurance Association (HPIA) for its handling of claims in Puna’s lava zones, calling it a good model of how things should have been done by others. He highlighted two cases where Hilo Circuit Judge Henry Nakamoto denied motions to dismiss lawsuits brought by Philip and Lanell Haysmer and Susie Osborne, who lost their homes. The Haysmers were able to prove their home was taken by fire and not by lava, despite a mainland claims adjuster’s decision.
Foster emphasized the goal of getting to trial as soon as possible to let the jury decide, noting that people are still struggling financially and not receiving the benefits of their insurance contracts. He also mentioned other lawsuits related to the lava bomb incident, where a boulder of fiery rock injured passengers on a lava tour boat. One lawsuit seeks to exclude their suit from court-annexed arbitration, while another was filed by an Oregon couple and Californians against Lava Ocean Tours and the boat’s captain, Shane Turpin, for willfully endangering passengers.
