Travelers Property & Casualty Company of America (STA) and Four Key
  Individuals Working for Travelers Sued for Tens of Millions in Louisiana
    Federal Court. Suit Alleges Fraud, Bad Faith, Breach of Contract and
  Fiduciary Duty, and Conspiracy Stemming from Travelers Failure to Comply
 with its Obligations to a New Orleans Hospital Severely Damaged and Closed
                                by Katrina.

    NEW ORLEANS, May 30 /PRNewswire/ -- In a Lawsuit filed on May 23rd,
Civil Action No. 06-2777, in the United States District Court for the
Eastern District of Louisiana Building Concepts & Designs Construction Inc.
(BCD) as assignee and attorney in fact for TOURO INFIRMARY and PREFERRED
CONTINUUM CARE sued Travelers Property & Casualty Company of America (STA)
for damages exceeding $28 million dollars. The suit alleges STA was
provided with a Satisfactory Proof of Loss on or about November 15, 2005,
again on or about January 10th 2006, and again on or about February 10th
2006. Despite receipt of several comprehensive "Proofs of Loss" STA has
tendered less than 4% of the alleged amount for which STA is liable. The
suit defines the alleged amounts owed and damages as, however not limited
to, cost of repairs, damaged property, loss of income, and statutory
penalties. The suit further alleges that Travelers Property & Casualty
Company of America (STA), and four key individuals working for Travelers,
acted in bad faith and STA acted arbitrary, capricious and without probable
cause. The suit describes how STA allegedly violated 8 Louisiana Revised
Statutes and Civil Code and, because of said violations, should be held
liable. The suit further states as a result of the actions of Travelers
Property & Casualty Company of America (STA) plaintiffs' sustained
substantial damages, including being forced to initiate repairs on their
own in order to reopen the hospital to serve the New Orleans community,
which is woefully short on hospitals and hospital beds, and thus, have
sustained a loss of the use of the funds thus expended, as well as
attorney's fees and other damages to be proven at trial; that Travelers
Property & Casualty Company of America (STA) has failed to exercise that
degree of skill, judgment and consideration for its insured, which it may
be expected to utilize and further; that the said Travelers Property &
Casualty Company of America (STA) is negligent in failing to honor and/or
perform of its duty of good faith and fair dealing to its insured; that
defendant failed to make a written offer to settle the property damage
claim within thirty (30) days after receipt of a Satisfactory Proof of
loss; that this defendant wrongfully and arbitrarily withheld payment of
the claim of plaintiff without reasonable grounds; that Travelers Property
& Casualty Company of America (STA) breached its duty to reasonably
investigate and to promptly resolve the claim of claimants herein; that it
has failed to assert any good faith defense and to provide claimant herein
with any documentation substantiating why no good faith tender was made to
its insured and/or the assigns of its insured herein; as well as all other
general and equitable relief.
    Wherefore, after due proceedings, Travelers Property & Casualty Company
of America, STA, Rick Sparks, Norman Taylor, William Schoenborn and William
Schaffer should be ordered to pay the Plaintiffs damages in the amount of
TWENTY EIGHT MILLION SEVEN HUNDRED FORTY-THREE THOUSAND SEVEN HUNDRED
NINETY TWO DOLLARS which represents all amounts due under said policy,
including but not limited to cost of repair and/or replace all damaged
property and business personal property, extra expenses, expediting
expenses, lost income, together with all damages as result of Travelers
Property & Casualty Company of America's (STA) breach, including attorney's
fees and statutory penalties pursuant to Louisiana Revised Statute 22:1220,
as well as penalties under Louisiana Revised Statute 22:658.

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