Judge Denies Lloyd’s of London Motion to Dismiss Lawsuit

January 2, 2019, 3:22 PM HST (Updated January 2, 2019, 4:51 PM)
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For the second time in less than a month, Third Circuit Judge Henry Nakamoto entered an order denying a motion to dismiss a lawsuit brought by Puna homeowners against Lloyd’s of London. Lloyd’s sought the dismissal of the bad faith, consumer protection, and conspiracy claims in a lawsuit filed by Susie Osborne, the founder and director of Hawai‘i Island’s Kua o Ka Lā New Century Charter School.

Lava closes in on a Kua O Kala Charter School. PC: HFD

The claims in Osborne’s lawsuit are based on the failure by Lloyd’s and others to honor Osborne’s insurance claim in good faith following the destruction of the Osborne home after the Kīlauea eruption in May of 2018. 

“Susie Osborne is a remarkable person,” said Jeffrey Foster, the Big Island attorney who is spearheading the litigation against Lloyd’s of London and its agents and affiliates. “She has dedicated her life to the education of our youth and the betterment of our Hawai‘i Island community. I am looking forward to presenting Ms. Osborne’s story to a jury of her peers at trial.”

Despite paying over $2,400 a year for homeowner’s coverage with Lloyd’s, Osborne’s claim was denied by an unlicensed claims adjuster from an unlicensed claims adjusting company located 4,000 miles away in Little Rock, Arkansas. No one ever inspected or even set foot on Osborne’s property prior to the denial being issued.

Filing the third lawsuit against Lloyd’s this past summer, Osborne is taking on a network of affiliated agents, brokers, and adjusters tied to Lloyd’s of London after they allegedly sold her a Lloyd’s certificate of home insurance then illegally denied her claim.

Osborne, a lifelong practitioner of “living pono,” which loosely means “acting righteously toward others and the environment,” realized her hard-earned dream in 2002 of bringing educational opportunities to Big Island children when she co-founded the Kua O Ka Lā New Century Public Charter School on 600 acres of historic coastal land, 40 acres of which comprised some of the most ancient Hawaiian villages in existence.

On July 12, 2018, the devastation wrought by Kīlauea claimed the school.

The denial of the motion to dismiss was entered on Dec. 27, 2018. A copy of the denial can be found online 

Homeowners in Hawai‘i seeking further information can reach Foster Law Offices by going online or calling (808) 348-7800.

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