Court denies Citizens delay

A state district court judge in Jefferson Parish has rejected Louisiana Citizens Property Insurance Corp.’s latest effort to delay enforcing a $100 million-plus judgment.

Citizens is expected to appeal that decision.

The state-backed property insurer of last resort lost a class-action lawsuit in August 2009 for taking too long to begin adjusting claims from hurricanes Katrina and Rita. Judge Henry Sullivan ruled that Citizens had to pay $5,000 for each of the more than 18,000 policyholders affected.

Last month, Sullivan gave plaintiff attorneys permission to seize Citizens’ cash to satisfy the judgment, which had grown to $104 million. Legal interest is adding more than $10,000 a day to the total.

Citizens’ board of directors is scheduled to meet Thursday to discuss a settlement offer from the plaintiff attorneys.

Neither Insurance Commissioner Jim Donelon nor plaintiff attorneys will discuss the details of that proposal.

Before the 2009 ruling, Citizens attorneys and plaintiff attorneys had worked out a $50 million payment. Citizens would have been able to spread the payments over 15 months. However, the board of directors did not vote on the proposal.