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State Farm Wins Hurricane Lawsuit

By Associated Press

Judge dismisses fraud claim against State Farm for claiming Biloxi couple's damage was caused by flooding State Farm Wins Hurricane Lawsuit

Published: Mon, April 21, 2008 - 9:53 pm

JACKSON, Miss. (AP) - A federal judge has dismissed claims of
fraud in a key Hurricane Katrina lawsuit.
The lawsuit accused State Farm Fire & Casualty Co. of using
different engineering reports to deny a couple's insurance policy
after the storm.
The ruling by U.S. District Judge L.T. Senter Jr. came in the
federal lawsuit filed by Thomas and Pamela McIntosh.
The McIntoshes sued State Farm after the insurer blamed most of
the damages to their Biloxi home on Katrina's storm surge and paid
the couple $36,228. The homeowners policy excluded coverage for
flood damage.
The lawsuit was the centerpiece storm litigation filed by
embattled tort attorney Richard "Dickie" Scruggs.
Scruggs sued on behalf of dozens of storm victims claiming that
State Farm routinely denied claims based on bad faith and fraud.
Scruggs has since pleaded guilty to federal bribery charges in an
unrelated case and no longer represents storm victims.
State Farm spokesman Jonathan Freed says -- quote -- "Judge
Senter has confirmed what we have been saying all along - this is a
basic wind/water dispute and plaintiffs can not prove fraud."
An attorney who has represented the McIntoshes in the past did
not immediately respond to a message left by The Associated Press.
Senter's partial summary judgment dismisses claims of fraud
against the insurer and allegations of "aiding and abetting"
fraud on the part of E.A. Renfroe, a company that provided storm
assessment.

(Copyright 2008 by The Associated Press. All Rights Reserved.)