Allstate might have struggled in the New Orleans' public court of opinion, but a lawsuit that was dropped last month by the plaintiffs shows that policyholders aren't always the victims in a claim dispute.
Allstate began facing the first of about 1,000 cases against it in New Orleans in mid-February. The first federal trial involved plaintiffs Lawrence and Elizabeth Tomlinson. As in the Tomlinson case, a majority of the other pending cases involve disputes about claim payments, determinations, and charges of bad faith made after Hurricane Katrina struck in Aug. 2005.
According to reports, Allstate paid the Tomlinsons $150,000 for damage to their home, contents, and additional living expenses prior to litigation. The main dispute came when the company began questioning some of the claim costs that were being reported.
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