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Feds Toss Flood Suit Back To Mississippi State Court

In a major setback for insurers, a federal district court judge has ruled that a state court should hear a suit brought by Mississippi officials over property-casualty insurer denials of Hurricane

By Steven Tuckey | Updated on March 19, 2006

In a major setback for insurers, a federal district court judge has ruled that a state court should hear a suit brought by Mississippi officials over property-casualty insurer denials of Hurricane Katrina claims based on flood exclusion policy language.

Jackson, Miss.-based District Court Judge Tom S. Lee said that while there is “federal interest in the subject matter and outcome in the suit,” ultimately the issues remain state-oriented.

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