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Lloyd’s of London Reverses Course, Will Pay Kīlauea Victims
News Source: Big Island Now
Lloyd’s of London has reversed its previous denials of claims for victims of the Kīlauea Volcano eruption, following a motion to dismiss it lost in Hawaiian state court. The reversal means Lloyd’s will now pay policy limits plus 10% interest to policyholders whose claims were previously denied, a payout estimated to be in tens of millions.
Jeffrey Foster, representing several dozen victims, expressed happiness for his clients and the community, commending Lloyd’s for its decision. However, he emphasized that reversing the “lava exclusion” cannot resolve the bad faith and deceptive practices claims against Lloyd’s. Foster intends to continue lawsuits seeking to hold Lloyd’s legally accountable.
The change came after a court order denied Lloyd’s motion to dismiss a lawsuit filed by Foster on behalf of Philip and Lanell Haysmer, former homeowners from Leilani Estates. Despite paying nearly $3,000 a year for homeowner’s coverage with Lloyd’s, the Haysmers’ claim was denied by an unlicensed claims adjuster from Arkansas, and no one inspected their property before the denial.
Foster highlighted that while Lloyd’s has reversed its decision, the violations of consumer protection laws and good faith conduct by Lloyd’s and its agents must still be addressed. He hopes settlement talks will begin soon but is prepared to continue actively litigating until Lloyd’s pays what is owed.
The eruption of Kīlauea in May 2018 resulted in the destruction of over 700 homes in Puna, causing significant losses for many residents. Foster Law Offices can be contacted for further information by visiting PunaClaims.com or calling (808) 348-7800.
