Judge Denies Class Action Status In Katrina Suit

Law360, New York (September 12, 2006, 12:00 AM EDT) -- In a setback for hundreds of Mississippi policyholders, a judge has tossed the group’s bid to sue Allstate Corp. as a class, ruling that they must take the insurer to court separately over alleged mistreatment of their Hurricane Katrina claims because the storm affected each homeowner differently.

U.S. Magistrate Judge Robert Walker of the Southern District of Mississippi ruled that because “each insurance contract is a separate transaction," each policyholder should sue Allstate independently.

The plaintiffs in the Allstate case had all purchased the same standard...
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