By Matt JohnsonAssociated PressA group of lawyers and academics is arguing that the California courts should ignore a federal court ruling that the Central California Earthquake Insurance Program must reimburse homeowners and businesses who were injured by the quake.
The suit, filed Monday in federal court in Los Angeles, says that the U.S. Supreme Court’s 2010 ruling that limited the program to those who lost property because of a quake could have a ripple effect that could impact future lawsuits in other states.
The court ruled in 2011 that a state program in California that covers people who lost their homes to earthquakes must cover damage to their personal property.
The plaintiffs say that by limiting the program’s coverage to those affected by a quake, the court has created an inequitable burden on homeowners and business owners, who will have to pay more out of their own pockets than they otherwise would for damages.
In a separate lawsuit filed Monday, attorneys for the California Department of Insurance say that the lawsuit does not seek to overturn the 2011 decision that limited COVID coverage to people who were hurt by a major quake.
California has received a lot of press attention for the potential impact of the quakes.
More than 4,000 people have died from COVID, and more than 1,300 have died in the central Valley.
In its ruling, the U,S.
Court of Appeals for the Ninth Circuit found that the federal court had no authority to determine the scope of COVID insurance coverage because the insurance program has been “permanently established” in California.
The state of California has no way of knowing what the future holds for COVID in California, said Daniel Kucher, an attorney with the law firm Covington & Burling who is representing the plaintiffs.