AP: Judge Balks at State Farm Katrina Deal

[Eugene]

Judge Balks at State Farm Katrina Deal
Federal judge rejects Miss. settlement with State Farm
over homeowner claims

NEW ORLEANS, Jan. 26, 2007
By MICHAEL KUNZELMAN Associated Press Writer

(AP) A federal judge in Mississippi on Friday refused to endorse part of a proposed
settlement that calls for insurance payments to thousands of Mississippi policyholders
whose homes were destroyed or damaged by Hurricane Katrina.

U.S. District Judge L.T. Senter Jr. would not sign off on a deal between State Farm
Fire & Casualty Co. and Mississippi Attorney General Jim Hood for at least $50 million
in payments to policyholders whose claims were denied but didn't sue the company.

The Bloomington, Ill.-based insurer also had agreed to pay about $80 million to more
than 600 policyholders who sued the company for refusing to cover damage from the
Aug. 29 2005, storm. Senter hasn't been asked to sign off on that part of the deal.

Senter said he doesn't have enough information to determine how many policyholders
would benefit from the deal or how much each can be paid.

-snip-

Full article: http://www.cbsnews.com/stories/2007/01/26/ap/business/mainD8MT90R80.shtml

From Tuesday: State Farm agrees to multimillion settlement of Katrina lawsuits (AP via LBN)

[ShockediSay]

1. Betcha we're gonna see a lot of PR spin advertising from State Farm

on Public Radio and Television.

[David Dunham]

2. The deal gave Miss. policyholders $400 million. This judge stinks.

[pitohui]

3. i doubt state farm is happy either

if the deal don't go thru, there is a criminal case to be made, this is part of what pressured them to agree to this settlement in the first place