Mississippi Attorney General Jim Hood won a small battle last month when the U.S. District Court granted a motion to remand to state court the lawsuits against several insurers regarding coverage for damage resulting from Hurricane Katrina. The lawsuit seeks to make the insurance industry pay for losses caused by Katrina, particularly damage caused directly or indirectly by water, whether or not driven by wind.
Defendants in the case, which includes State Farm, Allstate, Mississippi Farm Bureau, Nationwide, and United Services Automobile Association, sought to remove the action to federal court after it was initially filed in state court. They contended that the lawsuit raised substantial federal legal issues.
The court disagreed, although it acknowledged in its response that defendants had identified a “federal interest in the subject matter and outcome of this suit.”
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