Image: HOLLYN JOHNSON/Tribune-Herald Susie Osborne, in a July file photo.
Judge denies dismissal of Leilani homeowner’s lawsuit
News Source: Hawaii Tribune Herald
In recent legal developments, a Hilo Circuit Court judge, Henry Nakamoto, has denied Lloyd’s of London’s motion to dismiss a lawsuit brought against them by Susie Osborne, founder of Kua o Ka La Public Charter School in Puna. The lawsuit, which includes claims of bad faith, consumer protection, and conspiracy, was allowed to proceed. Osborne’s home was destroyed by a fire that spread from neighboring homes after she evacuated Leilani Estates due to volcanic activity. Despite paying over $2,400 annually for homeowner’s coverage with Lloyd’s, her claim was denied by an unlicensed claims adjuster from Arkansas who never inspected her property.
Jeffrey Foster, Osborne’s attorney, described her as a remarkable individual dedicated to education and community betterment. Foster expressed his anticipation for presenting Osborne’s case to a jury.
Kua O Ka La Public Charter School, located in lower Puna, was also impacted by the volcanic activity, being inundated by lava on July 12. However, the school is not a party to Osborne’s lawsuit.
This ruling follows a similar decision by Nakamoto on November 13, where he denied a motion by Lloyd’s to dismiss a lawsuit filed by Philip and Lanell Haysmer, whose Leilani home was destroyed in a fire during the eruption. The Haysmers, who paid almost $3,000 annually for homeowners coverage with Lloyd’s, allege that Lloyd’s and others failed to honor their insurance claim in good faith. Specialty Program Group, Arm Claims Inc., and Mullen are co-defendants in both the Haysmer and Osborne suits.
