Louisiana Supreme Court Ruling Strengthens Contractor Defense in Road Signage Dispute - Insurance Claims News Article

Louisiana Supreme Court Ruling Strengthens Contractor Defense in Road Signage Dispute

Monday, July 7th, 2025 Insurance Industry Legislation & Regulation Litigation Property

The Louisiana Supreme Court’s recent decision in Gregory Chank v. Starr Indemnity & Liability Insurance Company sets an important precedent for contractors and their insurers, reinforcing procedural standards for summary judgment in negligence claims. At the heart of the case was an accident allegedly caused by improperly placed road signage on I-49. The plaintiff claimed negligence by the contractors and the Louisiana Department of Transportation & Development, but failed to provide factual evidence to back the allegations.

The court emphasized the plaintiff’s burden to establish a genuine issue of material fact with concrete evidence—not just allegations. It reaffirmed that once a defendant moves for summary judgment and demonstrates an absence of evidence, the plaintiff must respond with specific facts. The Supreme Court found the lower appellate court erred by placing too much burden on the defendants to prove signage adequacy, rather than requiring the plaintiff to support their claims with substantive proof.

By reinstating the district court’s summary judgment in favor of the contractors, the ruling confirms a defendant’s ability to win dismissal when plaintiffs lack evidentiary support. This outcome can significantly reduce unnecessary litigation and associated costs for insurers and their policyholder contractors and subcontractors.

Additionally, the court’s interpretation aligns with Louisiana Revised Statute 9:2771, which offers contractor immunity when work is performed according to plans provided by others. Insurers and their insureds may now be better positioned to seek early dismissal in future claims that hinge on similarly weak factual foundations.


External References & Further Reading
https://www.theclm.org/Magazine/articles/state-supreme-court-issues-key-ruling-on-contractor-summary-judgment-in-road-signage-case/3277
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