In his ruling, Judge Walker said that allowing hundreds of policyholders to consolidate their cases against several major insurers would amount to a “quasi class-action lawsuit but without regard for the rigid requirements for class certification.”

Richard Scruggs, the high-profile Mississippi attorney whose firm is suing several insurers on behalf of hundreds of policyholders, had asked Judge Walker to consolidate his clients' cases against Nationwide, State Farm Fire & Casualty Co. and Allstate Property and Casualty Insurance Co. into a joint trial against each insurer.

Mr. Scruggs said his legal team is considering possible options including refiling the cases in state court, the Associated Press reported.

The insurance industry claimed victory in the first so-called “wind vs. flood” case when a federal judge last month upheld the principle that insurers are only liable for wind damage and storm surge does not constitute such loss. The plaintiffs in the case won only a small award.

U.S. District Judge L.T. Senter just prior to issuing his ruling raised the possibility of consolidating the cases in seeking suggestion from lawyers on how to expedite the thousands of such cases pending.

Robert Hartwig, chief economist for the Insurance Information Institute, said the Walker ruling will help clear out all those cases that don't belong in the system at all and thus might pave the way for future consolidation in some form.

This article originally appeared in The National Underwriter P&C. For the complete article, please click here.