Allstate said today a Louisiana couple voluntarily dropped their bad faith lawsuit in federal court stemming from Hurricane Katrina claims.
New Orleans area residents Lawrence and Elizabeth Tomlinson dropped their case in U.S. District Court in the city shortly before it was to go to trial, the Northbrook, Ill.-based carrier said.
The case represented the first such federal action by a Louisiana policyholder in the aftermath of Hurricane Katrina.
The Tomlinsons had claimed Allstate underpaid them for their damage and had failed to make a timely settlement, according to the insurer.
Allstate spokesman Mike Siemienas told the NU Online News Service that the withdrawal was completely voluntary and that the couple was in no way compensated for the action.
"We believe the result speaks for itself," he said.
The suit had nothing to do with whether or not the damage was caused by wind or flooding, Mr. Siemienas added.
The results contrast sharply with a similar case in a Mississippi federal court, where State Farm was ordered to pay substantial damages to a Gulf Coast couple who lost their home.
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