La. Federal Judge Remands Hotel Owner’s Virus Coverage Case, Says Agent Properly Joined

NEW ORLEANS — A Louisiana federal judge has remanded a hotel owner’s COVID-19 coverage action against Mt. Hawley Insurance Co. and two insurance agents, ruling that the non-diverse agent was not improperly joined because the plaintiff has adequately alleged a breach of fiduciary duty.

In an April 14 order, Chief Judge Nannette J. Brown of the U.S. District Court for the Eastern District of Louisiana found VCS LLC has stated a claim that ARI owed it a heightened duty and breached such duty by failing to recommend virus-related coverage.

VCS, which owns the Wingate by Wyndham Hotel in Slidell, La., …