Michael D. Loughry; Laura L. Loughry v. Allstate Insurance Company, 2415

* Judge, U.S. Court of International Trade, sitting by
designation.
** Pursuant to 5TH CIR. R. 47.5, the Court has determined
that this opinion should not be published and is not precedent
except under the limited circumstances set forth in 5TH CIR. R.
47.5.4.
UNITED STATES COURT OF APPEALS
FOR THE FIFTH CIRCUIT
__________________
No. 00-60890
__________________
MICHAEL D. LOUGHRY; LAURA L. LOUGHRY,
Plaintiffs-Appellants,
v.
ALLSTATE INSURANCE COMPANY, 2415,
Defendant-Appellee.
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Appeal from the United States District Court for the
Southern District of Mississippi, Biloxi
1:99-CV-191-GR
______________________________________________
October 15, 2001
Before DUHÉ and BENAVIDES, Circuit Judges, and RESTANI*, District
Judge.
PER CURIAM:**
Appellants Michael D. Loughry and Laura L. Loughry (the
“Loughrys”) appeal from an adverse summary judgment dismissing
their contract and bad faith claims seeking punitive damages
against Allstate Insurance Company. After careful review of the

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record, the briefs and oral argument presented upon submission, we
affirm the judgment of the district court for the following
reasons.
1. Even assuming that the water pipe leak could constitute a
“sudden and accidental escape of water,” the Loughrys failed to
create a fact issue that such water directly caused the physical
damage for which they claim damages. In the absence of such
evidence, the provisions of the contract explicitly and
unambiguously precluded recovery on the Loughrys' contract claim.
2. The Loughrys' claim of estoppel is without merit because,
under Mississippi law, estoppel and waiver cannot extend insurance
coverage to cover a risk or loss not contemplated by the language
of an insurance policy. See Mississippi Hosp. & Med. Serv. v.
Lumpkin, 229 So.2d 573, 576 (Miss. 1969); Gilley v. Protective Life
Ins. Co., 17 F.3d 775, 781 (5th Cir. 1994). In addition, even were
estoppel available, the Loughrys failed to establish a fact issue
with respect to reliance on Allstate's conduct.
3. Punitive damages based upon bad faith denial of coverage
are not available because Allstate was entitled to summary judgment
on the coverage issue.
Accordingly, the judgment of the district court is AFFIRMED.

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