Due to the State of Emergency and the historic flooding in parts of Louisiana, the Commissioner of Insurance is promulgating Emergency Rule 28, which retroactively suspends statutory provisions of the Insurance Code concerning cancellations, terminations, non-renewals, and non-reinstatements of insurance policies due to a material change in the risk, and also gives insureds more time to comply with other policy provisions. The emergency rule applies to all lines of insurance and all regulated entities.

 

President Obama has authorized a cost-share adjustment for Federal funds to cover 90 percent of eligible public assistance costs under the Stafford Act, which provides statutory authority for most Federal disaster response through FEMA. The cost-share adjustment, announced by President Obama in a September 8, 2016 letter to Louisiana Governor Edwards, followed FEMA’s disaster-related obligations surpassing the $621 million threshold. The adjustment amends the prior declaration of August 14, 2016, increasing the Federal cost share from 75 percent to 90 percent, and decreasing the State portion from 25 percent to 10 percent.

On August 14, 2016, President Obama declared several parishes in southern Louisiana major disaster areas because of the severe storms and flooding that occurred. These parishes included Acadia, Ascension, Avoyelles, East Baton Rouge, East Feliciana, Evangeline, Iberia, Iberville, Jefferson Davis, Lafayette, Livingston, Pointe Coupee, St. Helena, St. James, St. Landry, St. Martin, St. Tammany, Tangipahoa, Vermilion, Washington, West Baton Rouge, and West Feliciana.

If your principal residence is located in one of these parishes or your business’ principal place of business is located in one of these parishes, the designation of these parishes as a federally declared disaster area provides you with certain federal tax relief. This federal tax relief includes not only the suspension of certain deadlines to file tax returns or pay taxes, but also the ability to claim casualty losses incurred in the flooding on 2015 tax returns. Continue Reading Federal Tax Return Filing and Payment Relief

The Louisiana Association of Business and Industry (“LABI“) sent a formal request to U.S. Department of Labor Secretary Thomas E. Perez to request a delay in implementing the new federal overtime rule in the 22 Louisiana parishes that received a disaster declaration during last month’s historic flood.

The new regulation is scheduled to go into effect nationwide
on December 1.

We will continue to monitor the status of the request and post any updates as they occur.

During the recent historic flood event, thousands of homes across south Louisiana were inundated with floodwater. For most homeowners, the recovery process has just begun. Information on possible funding, temporary housing, or other assistance is available from FEMA and other organizations. But if you own a flood-impacted home, you face another significant and perhaps more long-term question: What can you do now to protect the value—including the resale value—of your home? The following are a few points to consider and suggestions.

Disclosure of Flood–Related Issues
Louisiana law requires a seller of residential property to complete and provide to the prospective purchaser a property disclosure form prescribed by the Louisiana Real Estate Commission (LREC).1 The LREC property disclosure form 2 includes the following questions, among many others, that must be answered by the seller:

  • “Has any flooding, water intrusion, accumulation, or drainage problem been experienced with respect to land? If yes, indicate the nature and frequency of the defect at the end of this section.”
  • “What is/are the flood zone classification(s) of the property?”
  • “Has any structure on the property ever taken water by flooding (rising water or otherwise)? If yes, give the nature and frequency of the defect at the end of this section.”
  • “Has there been property damage related to the land or the improvements thereon, including, but not limited to, fire, windstorm, flood, hail, lightning, or other property damage? If yes, were all related property damages, defects, and/or conditions repaired?”
  • “Does the property or any of its structures contain any of the following? Check all that apply and provide the nature and frequency at the end of this section. . . . mold/mildew. . .toxic mold. . .contaminated drywall/Sheetrock.”
  • “Were any additions or alterations made to the property? If yes, were the necessary permits and inspections obtained for all additions or alterations?”

So not only should the seller disclose flood-related issues to the buyer as a matter of good faith, the seller is required to do so by law.

1 (La. R.S. 9:3198.)
2 The LREC property disclosure form is available here. An amended version of the form will become effective on January 1, 2017; however, the amended form does not change the disclosures discussed in this article.

Note also that Louisiana law requires licensed home inspectors to describe in their inspection reports the presence of suspected mold growth if visual evidence of mold is discovered inside the home.3 A mold inspection is outside the scope of a standard home inspection; however, if the home inspector observes mold, he must say so in the inspection report.4

Past flood damage and current mold issues have the potential to negatively impact the value of your home. So what should you do?

Protecting the Value of Your Flood-Impacted Home
A key factor in protecting the value of your home will be how well you can demonstrate to prospective purchasers, appraisers, inspectors, lenders, insurers, and others that the flood-related damage was properly repaired or otherwise addressed. What you do now will impact the future value of your home. The following are a few suggested strategies: Continue Reading After the Flood—Strategies for Protecting the Value of Your Home

On August 14, 2016, President Obama declared a major disaster in the State of Louisiana due to the severe storms and flooding that took place in several State parishes (“Louisiana Storms”). Following the declaration, the Internal Revenue Service (IRS) issued guidance postponing certain tax filings and payment deadlines for taxpayers who reside or work in the disaster area. The relief also provides qualifying individuals with expanded access to their retirement plan assets to alleviate hardships caused by the Louisiana Storms. Below is a summary of the filing extension for the Form 5500 series and administrative changes that employers can make to expedite plan loans and hardship distributions to Louisiana Storm victims.

Extension of Filing Deadlines 
Plan sponsors in the affected parishes listed below now have until January 17, 2017, to file Form 5500 series returns, provided the return had an original or extended due date falling on or after August 11, 2016, and before January 17, 2017.

Continue Reading IRS Provides Benefit Plan Relief to Louisiana Flood Victims

Effective August 29, homeowners impacted by the flooding in Louisiana can apply for Shelter at Home. This is a new program, announced by Gov. John Bell Edwards last week that allows flood victims to live at home while they continue to rebuild, rather than stay at a hotel, shelter or rental property.

If a damaged home can be made livable with up to $15,000 in repairs, then the state will provide a crew to do the work on the property.

The program is not intended to cover the cost of a full rebuild of a home and will only cover minor repair work such as basic electrical and plumbing inspections; carpet and insulation removal; air conditioning and hot water heater repairs; and installing temporary bathroom fixtures. The program will also pay for small kitchen appliances.

Residents eligible for the program can call 1-800-927-0216 or register online at shelterathome.la.gov.

Like you, many of our colleagues, families, and friends have been hit hard by the recent, historic flooding in Baton Rouge and surrounding parishes. Our hearts go out to all.

At such times, we can and must tap into two of our greatest strengths: our strong sense of community and our unmatched resilience. Together, we are in the initial stages of a massive recovery effort that will take time, but will yield positive results—this we believe.

As you begin to rebuild your homes, businesses, and lives, we know that you will have many questions, a number of which will involve legal concerns. For decades, Jones Walker has been at the forefront of regional and national disaster recovery efforts, helping clients prepare for, respond to, and recover from crises of all types and magnitudes. We can offer effective legal advice as you address your most immediate challenges, including issues involving FEMA programs, insurance coverage, real estate, employee relations, and more.

Please contact us with any questions or to learn more about how we can help. As we move forward in this process, we will continue to publish useful updates on our website and through client alerts and social media.

We wish you strength and peace during this difficult time.

As a result of the flooding throughout Louisiana, Governor John Bel Edwards issued Executive Order JBE 2016-053 to suspend deadlines in legal, administrative and regulatory proceedings.  The suspension is retroactive from Friday, August 12, 2016 and continues through Friday, September 9, 2016, unless amended, modified, terminated or rescinded by the Governor.

The Louisiana Department of Revenue issued Revenue Information Bulletin 16-046 to confirm that the suspension applies to all tax assessments issued by the Secretary of the Department. The delays that are suspended include the prescriptive period for a taxpayer to file a petition for the redetermination of an assessment with the Board of Tax Appeals, as well as all time delays for appeals in Louisiana courts in matters filed by taxpayers and the Department.

Two partners signs document stamped handle puts his signature cartoon flat design styleA “force majeure” clause is a contract provision that relieves the parties from performing their contractual obligations when certain circumstances beyond their control arise, making performance commercially impracticable or impossible. In Louisiana, absent agreement to the contrary, force majeure excuses parties from liability when they fail to perform due to a fortuitous event that makes performance impossible. So, in determining whether the doctrine applies, it is necessary to determine (1) whether performance is impossible and (2) whether the impossibility was caused by a fortuitous event. Here are a few things to consider when confronting force majeure issues:

  • In many commercial transactions, force majeure issues have been addressed in the contract, so it is important to obtain and review the contract.
  • Many contractual provisions and some statutory provisions require a party that is claiming force majeure to notify the other parties to the contract of the event of force majeure. Some provisions require “prompt,” “timely,” or “seasonable,” notice. Therefore, it is important to determine promptly whether there is a notice requirement in your client’s situation. Don’t just assume that because everyone knows about the 2016 flooding in Baton Rouge and surrounding parishes, notice provisions can be disregarded.
  • Some force majeure provisions or situations may totally relieve a party of an obligation to perform a contractual obligation. Other situations may merely suspend or delay the time for performance. It is important to determine which is applicable in a particular situation.

Continue Reading After the Storm—Key Force Majeure Issues