Citadel Wins Case Against Insurer Over Katrina Damages
November 18, 2013 at 3:56 AM (PT)
CITADEL BROADCASTING CORP. was awarded almost $9 million plus $2.95 in attorneys' fees by a jury on LOUISIANA which decided that AXIS US INSURANCE CO. had breached its contract to pay for damages incurred by three NEW ORLEANS radio stations -- KKND, KMEZ, and WDVW -- knocked off the air by Hurricane Katrina.
LAW360.COM reports that AXIS owes CITADEL, now part of CUMULUS MEDIA, $5.9 million to cover lost advertising revenue and $2.9 million for acting in bad faith. AXIS attempted to avoid payment by claiming that "a loss of market exclusion" in the policy precluded CITADEL's claims and that the company needed to "conduct a customer-by-customer analysis showing that property damage tied to Katrina was specifically responsible for the reduction in anticipated advertising revenue."
CITADEL's attorney, PAUL BREENE of REED SMITH LLP, said that the verdict "demonstrated the jury’s total rejection of the insurer’s so-called ‘loss of market’ exclusion and of its effort to create an impossible burden on causation. The cause of these stations’ loss of advertising revenue — Katrina — couldn’t have been more obvious, and the jury got it.”