Travelers Property & Casualty Company of America 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), a subsidiary of St. Paul's Travelers (NYSE: 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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