Farmer flooded after levee breach wins case against insurance company

A Southeast Missouri farmer whose property was damaged by floodwaters after the Birds Point Levee breach in 2011 has won his case against an insurance company in federal court.

Cornerstone National Insurance Co. initially refused to pay Mississippi County farm owner McIvan Jones' claims, saying "recovery was precluded by 'flood-in-progress' exclusions" in the policies, according to a news release from Jones' attorneys.

Jones purchased flood insurance from Cornerstone in April 2011.

The levee breach occurred May 2, 2011, when it was detonated by the U.S. Army Corps of Engineers in an effort to alleviate flooding in Southern Illinois, specifically Cairo.

Jones completed his insurance applications, which were required by a loan he took out to support the year's wheat crop, April 27, 2011. Policies that were effective May 2, 2011, to May 2, 2012, were issued by Cornerstone on April 28, the release stated.

In her ruling, Judge Audrey G. Fleissig said, "Neither at the time Plaintiff applied for and paid for the insurance, nor at the time Plaintiff closed on the loan, did Plaintiff know with any certainty whether the levee would be breached."

"The Court finds unpersuasive Defendant's arguments that Defendant should prevail because there was no need to breach the levee but for the fact that the Mississippi River was already at flood stage and it was the very waters from the flood-stage Mississippi River that flooded and damaged Plaintiff's property," Fleissig wrote. "The salient fact remains ... that the water that flooded Plaintiff's property would not have reached, much less damaged, the property, but for the breach of the levee."

Jones was awarded the total amount of the damages claimed, which exceeded $350,000, the release stated.

"The detonation of Birds Point had staggering consequences that directly impacted -- and continue to impact -- the livelihood of many families and farmers like Mr. Jones," attorney J. Michael Ponder said in the release. "It's gratifying that the court understood that and agreed that insurance companies cannot be allowed to abuse the intent of fine print to avoid honoring valid claims."

kwebster@semissourian.com

388-3646

Pertinent address:

Mississippi County, MO