Appeals Court Upholds Dismissal Of GRDA Lawsuit

Wednesday, November 21st 2007, 8:23 am

By: News On 6

DENVER (AP) -- A federal appeals court is upholding the dismissal of a lawsuit against the Grand River Dam Authority stemming from floods more than a decade ago. The Denver-based 10th U.S. Circuit Court of Appeals yesterday ruled that as a state agency, the GRDA could not be sued in federal court by two insurance companies trying to avoid payment of claims from a series of floods beginning in 1992.

Steadfast Insurance, the GRDA's primary carrier at the time, and Agricultural Insurance, the agency's excess liability carrier, argued that the GRDA had not taken sufficient action to avoid the floods and misrepresented the risk of flooding.

The floods resulted in a class-action lawsuit that ultimately was decided in favor of more than 100 Ottawa County property owners. The GRDA is still settling the claims.

GRDA Chief Executive Officer Kevin Easley says he is pleased with the decision.