State Farm Fire & Casualty Co. v. Hotel Management of New Orleans, L.L.C.

Judge Terri F. Love

hA French Quarter hotel’s fire prevention sprinkler activated, which caused water to leak into the gift shop below and damage merchandise. The gift shop owner’s insurer filed suit against the hotel seeking repayment of insurance proceeds paid to the gift shop owner for the damage. The trial court found in favor of the insurer and ordered payment of $41,662.05, plus court costs and legal interest from the date of demand. The hotel’s appeal followed.

We find that the trial court committed manifest error by finding in favor of the insurer because the insurer failed to meet its…