May 17, 2012 11:18 AM
The South Dakota Supreme Court says a Hermosa woman cannot sue a lender for failing to make sure her home was covered by flood insurance.
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Court documents say Rachelle Hunter signed a document indicating she needed flood insurance when she borrowed money from Highmark Federal Credit Union to buy a home in 2005. Her home was damaged by a flood in 2007.
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Hunter then sued the credit union, arguing it was negligent in failing to make sure the home was covered by flood insurance. The Supreme Court on Thursday upheld a lower court's decision to dismiss the lawsuit.
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The high court says federal flood insurance law does not give people a right to sue lenders in such a situation.
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