Federal Court in Mississippi rules that State Farm must pay $2.5 million in punitive damages for denying Hurricane Katrina insurance claim.
Mississippi Federal Court Judge L.T. Senter, Jr., ruled that State Farm must pay the Broussard family of Biloxi, Mississippi that portion of the damages that wind caused to their home. In short, the Judge found that State Farm failed to disprove the Broussard claim that wind blew the home off of its foundation. State Farm Insurance initially denied the entire claim alleging that the damages to the home were caused by flooding and not windstorm. Judge Senter’s ruling allowed the Jury to consider awarding punitive damages against State Farm for denying the entire claim, which resulted in a $2.5 million dollar verdict for bad faith against the insurer.
