PIERRE, S.D. -- The South Dakota Supreme Court said this morning a borrower cannot sue her credit union for failing to make sure her home was covered by flood insurance.
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The member, Rachelle Hunter, signed a document indicating she needed flood insurance when she took out a mortgage with Highmark FCU in 2005. Her home was damaged by the massive floods in 2007.
Hunter then sued the credit union, arguing it was negligent in failing to make sure the home was covered by flood insurance.
But the state High Court this morning upheld a lower court's decision to dismiss the lawsuit, saying federal flood insurance law does not give people a right to sue lenders in such a situation.
