State Farm has reached a settlement on a Mississippi Hurricane Katrina claim which was the centerpiece of litigation over how the company made its determination of wind versus flood damage.
The suit charging bad faith against the Bloomington, Ill.-based insurer was dropped by the Biloxi, Miss., couple recently. State Farm told NU Online News Service that the dropped charges made up "the centerpiece of allegations of State Farm wrongdoing promoted by" attorney Richard "Dickie" Scruggs (See "Allegations of State Farm Katrina Misconduct Withdrawn," NU Online News Service, Sept. 11). He is now serving a prison sentence on bribery charges.
State Farm said the settlement reached over insured damages to the home of Thomas and Pamela McIntosh was for $250,000, "which is less than 25 percent of the amount the McIntoshes alleged as damages in their breach of contract suit."
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