Mississippi couple's Hurricane Katrina suit settled

Daily Record, The (Baltimore), Mar 7, 2007 by Daily Record Staff

State Farm Mutual Automobile Insurance Co. settled a Mississippi couple's lawsuit after a federal judge said the insurer's denial of their Hurricane Katrina claim didn't merit punitive damages. Terms of the settlement weren't disclosed. "It's an outcome both sides can be happy with," said John Banahan, a lawyer for State Farm, the largest home insurer in the state.

The suit, in U.S. District Court in Gulfport, Miss., was the second to be tried before a jury concerning insurers' claims from the 2005 storm. It was filed by Michael and Michelle Williams whose home was destroyed and who were seeking the full value of their $46,000 policy, plus punitive damages. The trial, which began Monday, centered on whether the couple's Ocean Springs home was destroyed by wind, which was covered by State Farm, or water, which was not.