When State Farm settled a lawsuit with Thomas and Pamela McIntosh for $250,000 in September, it marked the end of more than just a standard insurer/policyholder legal compromise. It brought to resolution a case that well-known litigator Richard "Dickie" Scruggs used to call into question the integrity of State Farm, and the insurance claim industry as a whole, following the destruction caused by Hurricane Katrina.

For two years, the company and the industry was forced to defend itself publicly and privately from charges of bad-faith and claim-mishandling allegations in a breach-of-contract suit. At times, it seemed everybody was willing to join the mob. Senators, congressmen, and attorney generals all seemed to forget the presumption-of-innocence maxim. Even the mainstream media seemed intent on painting the industry as nothing but a profit monger.

So when the McIntoshes dropped their lawsuit, admitted that there was no credible evidence of bad faith by State Farm, and opted to accept what amounted to less than 25 percent of what they were seeking in court, it was not only a victory for State Farm, but also a victory for the claim industry in general. For a more thorough analysis of the case, Claims turned to Jay W. Brown, a partner at Beirne Maynard and Parsons, LLP and co-chair of the firm's insurance litigation/coverage section, to sort out the details of what happened and why.