State Farm Held Liable in Katrina Case(ordered to pay)

[maddezmom]

A federal judge ruled against an insurance company Thursday in a Hurricane Katrina damage case that could give a boost to hundreds of other homeowner lawsuits against insurers for refusing to cover billions of dollars in storm damage.


U.S. District Judge L.T. Senter Jr. ruled that State Farm Fire & Casualty Co. is liable for $223,292 in damage caused by Hurricane Katrina to a Biloxi couple's home, but left it to a jury to decide whether to award millions of dollars more in punitive damages.


The verdict appeared to surprise everyone in the courtroom. After his directed verdict on the property claim, Senter order a recess, saying it would give attorneys time to get over the shock.


The jury began deliberating the punitive damages Thursday afternoon.


Some of Senter's earlier rulings in other Katrina cases have favored the insurance industry, but his decision Thursday calls into question the companies' refusal to cover billions of dollars in damage from Katrina's storm surge.


more:http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2007/01/11/financial/f101614S97.DTL&feed=rss.business

[fooj]

1. Excellent news! Thanks for the post.

[BOSSHOG]

2. Good news but lets hope juries don't get carried away

with punitive damages. Put the insurance companies on the right path to abiding by contracts. If they are wacked with 5 million dollars in punitives in each lawsuit, they won't be left with anything to pay off claims.

[stillcool]

5. not to worry..

if they should do so, the court will just over-turn them...or they could do a Grace/Halliburton and bankrupt one or more subsidiaries and keep on trucking.

[uppityperson]

3. Great, k&r!

[rocktivity]

4. CUE THE VONAGE THEME!

:woohoo:
No doubt Randi Rhodes will have something to say about this. She's been contending that the insurance companies have denied flood coverage on the grounds that the flooding was caused by the hurricane, and denying hurricane coverage on the grounds that the homes were destroyed mainly by flooding!

:headbang:
rocknation

[earth mom]

6. Ah, so now they are to be held to their slogan...

"Like a good neighbor, State Farm is there." :eyes:

[twilight_sailing]

7. Good.

[mainegreen]

8. State Farm must be punished heavily for this.

The insurance companies have been getting away with far to much shit lately, and an example need be made.

[Ian_rd]

9. Another activist judge!

He should realize that Insurance corporations didn't get insanely rich by paying for the damage they insure against. They get insanely rich by not paying it. Damn anti-capitalist judge! :P

[harpboy_ak]

10. This will be the last insurance case he gets

Too bad it wasn't a class action, which would have some meaning. This is ONE case heard by ONE of the numerous Fed district judges in the district.

You can be sure that from now on, Ins companies will ask for (and get) a different judge. IIRC Fed court rules, both plaintiff and defendant can each ask once for a different judge without having to give a reason.

[Eugene]

11. Update: Punitive damages awarded in Katrina case ($2.5M) - AP

Punitive damages awarded in Katrina case

By GARRY MITCHELL, Associated Press Writer

2 hours, 7 minutes ago

GULFPORT, Miss. - A jury on Thursday awarded $2.5 million in punitive damages
to a couple who sued State Farm Fire & Casualty Co. for denying their claim
after Hurricane Katrina, a decision that could benefit hundreds of other
homeowners challenging insurers for refusing to cover billions of dollars
in storm damage.

A federal judge only hours earlier had taken part of the case out of jurors'
hands before they awarded punitive damages to State Farm policyholders
Norman and Genevieve Broussard.

U.S. District Judge L.T. Senter Jr. ruled Thursday morning that State Farm is
liable for $223,292 in damage caused by Hurricane Katrina to the Broussards'
home. Senter left it to a jury to decide whether to award punitive damages.

-snip-

Full article: http://news.yahoo.com/s/ap/20070111/ap_on_bi_ge/katrina_insurance

[Manifestor_of_Light]

12. Directed verdict -- excellent!!!!