Jury Orders State Farm To Pay Katrina Victim

Law360, New York (March 16, 2007, 12:00 AM EDT) -- As a broad settlement hangs in the balance, a federal jury has ordered State Farm Insurance Cos. to shell out money to one policyholder whose property was believed to be damaged by Hurricane Katrina-driven winds.

On Thursday, the Mississippi jury awarded Edward E. Gemmill $66,234.49, which is around one-third of the value of his homeowners’ policy, despite State Farm’s contention that floodwater, not wind, was responsible for the destruction.

State Farm opted to settle the issue of punitive damages in the case rather than leave it...
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