Catastrophe

Natural and man-made catastrophes breed high-stakes, high-volume litigation.  Such matters call for thoughtful litigation strategies from a law firm that is equipped to deliver on short notice all the resources an insurer requires.  That kind of responsiveness is a hallmark of the way Sonnenschein serves its clients.  We have the lawyers, the experience, the organization and the size to respond immediately.

Moreover, we have a proven track record.  Sonnenschein has spearheaded rapid coverage response and litigation defense following the nation's biggest catastrophes.  Sonnenschein also is there when catastrophic coverage claim issues become regulatory and legislative issues. The firm monitors legislative and regulatory developments, responds to insurance department inquiries, negotiates with insurance department personnel, testifies before legislative committees and assists in drafting policy language.  Sonnenschein has been retained to respond to many of the largest catastrophes in U.S. history, including:

• 2005 Hurricanes Katrina and Rita and other Gulf Coast storms
• 2003 Southern California wildfires
• 2001 World Trade Center attack
• 1994 Northridge earthquake
• 1993 Malibu and Laguna Beach firestorms
• 1991 Oakland Hills fire

Our Response

After Hurricane Katrina, one of the largest natural disasters in U.S. history, Sonnenschein served as litigation coordinating counsel for three insurers.
 
Our involvement has included the following:

• Developing strategic coverage analysis immediately after the hurricane
• Guiding claims personnel in formulating and propagating guidelines for claims handling in Mississippi, Louisiana and Texas
• Helping select experts to provide both global strategic analysis and large loss evaluations
• Defending individual suits involving large losses
• Defending class action litigation involving numerous coverage issues, such as:
  
  
  • the meaning of the "water damage" (flood) exclusion
  • the application of valued policy law
  • the proper payment of business interruption claims
  • appropriate price calculations for actual cash value and replacement costs

Our Track Record

In 2007, Sonnenschein obtained a major victory for an insurance company client after arguing the key coverage issue relating to Hurricanes Katrina and Rita before the Fifth U.S. Circuit Court of Appeals.

Sonnenschein's assistance to its clients in the aftermath of Hurricane Katrina, however, goes far beyond coverage analysis and litigation defense.  Our team was actively engaged in analyzing the construction, maintenance and failure of the levees in the New Orleans area.  The firm has prepared witnesses for state legislative hearings, insurance department investigations, grand jury investigations and congressional investigations.  Leveraging our extensive regulatory experience, we have worked with state regulators to implement policy language changes and rate filings.  We have analyzed region-wide business interruption as it affected individual policyholders' business interruption coverage and periods of restoration.  Our team also has advised on proper means of documenting, and distinguishing between, flood and wind losses, and developed formats for responding to policyholders in compliance with regulatory requirements.

The 2005 Gulf Coast storms show, once again, that—when catastrophe strikes—no other firm brings the breadth, depth and quality of litigation, counseling and regulatory experience to the aid of its insurance clients.