Yourlawyer.com (Wind Damage Claims News)

Judge: Corps can be sued over flood

Sat, 03 Feb 2007 00:00:00 -0800

The Army Corps of Engineers can't assert immunity in a lawsuit over the catastrophic flooding following Hurricane Katrina, because of the plaintiffs' claim that flooding stemmed from the agency's negligence in fixing defects in the Mississippi River-Gulf Outlet navigation project that it had known of for years, a New Orleans federal court judge ruled Friday.

U.S. District Judge Stanwood Duval's ruling cleared the way for WDSU-TV anchorman Norman Robinson, a Lower 9th Ward couple and two St. Bernard Parish residents to press for trial of a lawsuit blaming Army Corps of Engineers negligence for the flooding that destroyed their homes in Hurricane Katrina.

The plaintiffs' legal team said the case could go to trial by early next year, after Duval rejected corps arguments that the case should be tossed out because federal law makes the agency immune from lawsuits over its flood control projects and policy decisions.

Duval said the suit brought by Robinson and his fellow plaintiffs targets not a flood control project but what it calls the corps' negligent failure to fix defects in a navigation project it built years ago, the 70-plus-mile-long Mississippi River-Gulf Outlet shipping channel.

That inaction, the suit claims, caused destruction of more than 100 square miles of wetlands that once protected the area from storms and turned the channel into a superhighway that funneled Katrina's levee-bursting tidal surges into their homes.

"This is a landmark victory for Katrina victims in New Orleans and St. Bernard Parish," said one of the plantiffs' lawyers, who heads the team of lawyers from 20 firms around the nation that filed the case last spring.

"In a courthouse in New Orleans, because of Katrina, a judge has stood up and said the (U.S.) Constitution means what it says the government can't take your property without just compensation," the attorney said.

Individuals hoping to share in whatever compensation the corps may be ordered to pay must, by Aug. 31, send the corps what's called a Form 95 signaling their intent to sue the agency.

One of the plaintiffs'attorney representative on a committee helping plan for trial of all Katrina-related case on Duval's docket, said the MR-GO case ruling will be useful for court challenges to more than 100 corps-built levees around the nation that a recent study deemed unsafe.

But in the near term, a plantiffs' attorney said, Friday's ruling in the MR-GO case could buttress his plans for a new federal lawsuit aimed at holding the corps responsible for the 17th Street Canal floodwall break that left 80 percent of New Orleans flooded after Katrina.

One of the plantiffs' attorneys said the suit will claim that the corps gave the city Sewerage & Water Board a permit to dredge the 17th Street canal, work that allowed water to undermine soil beneath the floodwall, ultimately causing the wall to break.

"We believe (the canal dredging) was a navigation project and not a flood control project," said a plaintiffs' attorney.

Judge OKs Katrina flood suit vs. Corps

Fri, 02 Feb 2007 00:00:00 -0800

Residents whose homes were flooded during Hurricane Katrina can sue the Army Corps of Engineers over claims the agency ignored warnings about defects in a nearby navigation channel, a federal judge ruled Friday.

The ruling, one of the first significant decisions in a set of cases over what caused the flooding, may force the Corps to hand over documents about the management of the channel.

"Now we will have an opportunity to see what goes on behind closed doors," said a trial lawyer for the plaintiffs.

Eugene Pawlik, a Corps spokesman in Washington, said the agency's lawyers are reviewing the ruling but did not have any immediate comment.

The Corps and federal government had argued they were immune to legal challenges because decisions about the waterway were based in policy.

But U.S. District Judge Stanwood Duval said there is no way to know that at this point, and said plaintiffs should get a hearing for their allegations.

At issue is a 76-mile shipping channel built in the early 1960s as a shortcut to New Orleans. For years, environmentalists and others have criticized the Mississippi River-Gulf Outlet because it has eroded enormous tracts of wetlands and increased the threat of flooding.

During Katrina, storm surge traveled up the channel and overwhelmed levees protecting St. Bernard Parish and eastern New Orleans, according to scientists. The Corps of Engineers has acknowledged that the channel contributed to the region's flooding and the agency wants to guard against future flooding by building flood gates.

Insurer admits wind led to hurricane damage

Wed, 24 Jan 2007 00:00:00 -0800

A historic agreement with State Farm Fire & Casualty Co. means up to $500 million in payments to Mississippi policyholders previously dissatisfied with their Hurricane Katrina insurance settlements.

Mississippi Attorney General Jim Hood said Tuesday that State Farm will pay 50 percent of policy limits to certain homeowners left with only slabs. State Farm previously had denied those claims, maintaining water led to the destruction and the company was unable to find any separate wind damage covered under its policies.

The two sides signed a settlement agreement filed Tuesday in Hinds County Chancery Court, which also brings an end to the lawsuit Hood filed shortly after Katrina to seek coverage for policyholders whose homes were subject to tidal surge.

"It's not the best thing since sliced bread," Hood said. "I wanted to get everybody 100 percent. This is a settlement option primarily for the 8,000 people hit by storm surge who don't have lawyers."

Hood said State Farm has about 800 slab claims on the coast and about 9,000 policyholders whose homes were hit by storm surge. The company, by its own count, had a total of more than 32,000 Coast Katrina claims filed as of February 2006.

He later summed up what he sees as the benefits of the settlement. "This is just an option. It will get some money on the ground quick. It will stabilize the insurance market and it will help in our economic development. We've got to rebuild our homes and the people's lives."

State Farm released a statement that read, in part, "We believe this is in the best interests of our policyholders and State Farm, and the effort to rebuild Mississippi."

Under the settlement, State Farm has agreed to review the claims of any Coast policyholder who opts in. The settlement also gives policyholders the right to see their State Farm file. If a policyholder is dissatisfied with State Farm's offer, they can go to binding court arbitration with the company.

The settlement

Here's a glance at Mississippi's settlement with State Farm Fire & Casualty Co. in a lawsuit over Hurricane Katrina damage, according to Attorney General Jim Hood:

For a homeowner left only with a slab, State Farm is to make an initial offer to pay at least 50 percent of the homeowner's policy value. Policy holders with less damage are to receive offers for other levels of payment.

The offers are to be made in writing. Each policyholder is to have 18 business days, from the date of the offer, to either accept or reject it.

Those who accept the offer agree not to pursue further legal action in the claim involved. State Farm then has five business days to pay the agreed upon amount.

Those who reject the offer retain the option to pursue their own lawsuit in hopes of getting more money.

Those who neither accept nor reject the offer within the 18 days may still pursue their own lawsuit, but they may not seek punitive damages.

State Farm Loses Benchmark Katrina Case

Sat, 13 Jan 2007 00:00:00 -0800

In a ruling that may have ramifications on hundreds of other lawsuits, a federal judge in Mississippi declared that State Farm Fire & Casualty Co. is liable for damage to a couple’s Biloxi home following Hurricane Katrina. While the insurance company is responsible for paying $223,292 in damages to the home, the key part of the ruling was the award by a jury of $2.5 million in punitive damages.

The ruling by U.S. District Judge L.T. Senter Jr. may be troubling news for State Farm and other insurers who are claiming that they are not responsible for damage caused by flooding. In the case of Norman and Genevieve Broussard, State Farm had contended that they were not responsible for the damages because they were caused by water. However, the judge sided with the Broussards, who claimed that the damage was mostly due to excessive winds. Senter left the decision about punitive damages to a jury, and the jury decided to award punitive damages because State Farm had initially (and illegally) denied the Broussards’ insurance claim.

Senter’s ruling put the burden of proof on State Farm to show that water was the primary cause of the damage. In Senter’s mind, the company failed to establish that fact and therefore is liable for the damages. With hundreds of Katrina-related lawsuits still pending, the outcome of this case may eventually cost insurance companies billions of dollars in payout.

As reported earlier this week, State Farm is also currently negotiating a settlement of more than 600 Katrina lawsuits in the state of Mississippi, to the tune of $80 million or more. Today’s ruling may give more leverage to the plaintiffs in negotiations.

Parker Waichman Alonso LLP Retained by Hundreds of Hurricane Katrina Victims Whose Insurance Claims Have Been Denied

Thu, 11 Jan 2007 00:00:00 -0800

Parker Waichman Alonso LLP (www.yourlawyer.com) announced that it has been retained by hundreds of clients in Alabama, Florida, Louisiana and Mississippi whose insurance claims related to damage caused by Hurricane Katrina were denied. Under state and federal laws, insurance companies are required to resolve claims with their insureds in good faith and with fair dealing. Unfortunately, thousands of insurance policyholders are unable to put their lives back together because of widespread improper damage claim denials. Parker Waichman Alonso LLP is assisting policyholders whose property insurance claims have been denied, or who have not yet filed a claim but who plan to in the future. The firm is providing legal representation to these policyholders in order to quickly obtain the compensation their insurance coverage provides.

If your Katrina-related insurance claim was denied, or if you plan to file a claim, you can request a free case evaluation by visiting http://www.katrinaclaimdenial.com or http://www.yourlawyer.com/topics/overview/Katrina_Insurance_Claims . Case evaluations are also available by calling Parker Waichman Alonso LLP at 1-800-LAW-INFO (1-800-529-4636).

Alabama, Louisiana, Mississippi, and a majority of other states, have laws governing how insurance companies must deal with claimants. In fact, Louisiana makes it mandatory for insurers to make a written offer to resolve a property damage claim within 30 days after receipt of a "satisfactory proof of loss" for the claim. If the insurance company fails to do this, the company may be liable for penalties of up to 25% on the amount due. Other states have similar laws punishing insurance companies that unfairly deny or delay payment on valid claims.

"Insurance companies often use their own narrow interpretations of policy language to deny legitimate claims from individual policyholders," said Jerrold Parker, founding partner of Parker Waichman Alonso LLP. "Unfortunately, the insurance industry has been successful in convincing many claimants that their damage is not covered by their insurance policy. Policyholders should not rely on the conclusions of their insurance company without having their claim and insurance policy thoroughly reviewed by an attorney. Insurance companies tend to treat claimants more fairly when they are being represented by an attorney."

About Parker Waichman Alonso LLP

Parker Waichman Alonso LLP is a leading consumer fraud, products liability and personal injury law firm that represents plaintiffs nationwide. Parker Waichman Alonso LLP has assisted thousands of clients in receiving fair compensation for denied insurance claims, securities fraud, and injuries resulting from defective medical devices and medications. In addition to representing victims of bad faith insurance denials, Parker & Waichman, LLP represents thousands of individuals injured by Guidant Defibrillators, Drug Coated Coronary Stents, Vioxx, Fosamax, Ketek, ReNu with MoistureLoc, Ortho Evra and many other defective drugs and medical products. For more information on Parker Waichman Alonso LLP, please visit: www.yourlawyer.com or call (800) LAW-INFO.

CONTACT: Parker Waichman Alonso LLP
          David Krangle, ESQ.
          (800) LAW-INFO
          (800) 529-4636
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State Farm underpaid on purpose, ex-workers say

Sun, 27 Aug 2006 00:00:00 -0700

Two sisters who handled Hurricane Katrina claims for State Farm have turned over records to federal and state investigators because they say the company purposely underpaid or denied coverage for wind damage.

Cori and Kerri Rigsby believe State Farm Fire & Casualty Co. wanted to write off as much damage as possible to the hurricane's unprecedented storm surge covered under the National Flood Insurance Program.

Wind damage covered under State Farm homeowner policies was minimized, they say, through the use of biased or altered engineers' reports that attributed all or most damage to surge.

The company hoped to further benefit from policy language that says wind damage is not covered when water contributes.

Claims managers were told to memorize the language, the Rigsbys said.

"This thing hit, and they went into panic mode," said Kerri Rigsby, who now serves as a consultant, along with her sister, to a group of lawyers suing insurance companies over Katrina claims.

"They thought, 'If we have to go in and pay these claims, it's going to be billions. And we just can't do that.' And I think they truly believed it was water, and they were going to make sure that's how it went."

State Farm representatives in Bloomington, Ill., the home office, say what the women describe would be contrary to the company's claims practices.

"We have retained a third party to conduct an extensive review of Katrina, which would include interviews of these persons," spokesman Dick Luedke said. "Unfortunately, their lawyers haven't allowed our investigation team to meet with them."

He added, "In the process of handling hundreds of thousands of claims from Katrina, I would be surprised to find we did not make a few honest mistakes."

James Shortley, claims manager for the National Flood Insurance Program in Washington, said his agency has found no evidence that State Farm or other insurers overcharged the federal government.

Half a dozen FEMA inspectors spot-checked properties along the Gulf Coast, he said.

However, Rep. Gene Taylor, D-Miss., a State Farm customer who is suing the company, believes NFIP officials and private insurers are too cozy.

He said State Farm found no wind damage at his Bay St. Louis home, which he thinks is preposterous.

The National Flood Insurance Program has paid $2.4 billion on 18,934 residential and commercial claims statewide. As of July 31, State Farm had paid just over $1 billion on 79,386 residential, commercial and boat claims statewide.

In past catastrophes, the Rigsby sisters found their claims work for State Farm rewarding.

They were employed as claims adjusters, trained professionals who determine the cause of property damage and the amount owed under the policy. They were employed by damage assessment firm E.A. Renfro, but have handled State Farm claims almost exclusively in recent years.

They were glad to come back to the Mississippi Coast, their home, to help State Farm with Katrina claims. Both were claims managers.

They worked out of State Farm offices and each supervised a team of claims adjusters.

The first departure from standard procedure, they said, was State Farm's decision to order engineers' reports on all severely damaged properties subjected to tidal surge and wind. Normally, trained adjusters examine the property.

The Rigsbys said flood claims were paid before engineers even apportioned wind and water damage.

Once the Rigsbys decided State Farm was intentionally mistreating policyholders, they said that they wanted to do something about it.

They spent an entire weekend printing out computer records from State Farm's system. The task was so large they recruited three friends to help.

"This thing hit, and they went into panic mode."

Wilma Damaged a Record Number of Vehicles in South Florida

Wed, 02 Nov 2005 00:00:00 -0800

State Farm and Progressive spokespersons indicate they received more auto damage claims from Hurricane Wilma than any of last year's hurricanes. The two firms are Florida's largest auto insurers.

Wind is to blame for most of the vehicle damage after last week's storm.

Falling tree branches, airborne shingles and other wind-whipped debris left behind a lot of scratches, dents and smashed windows but fewer cars were destroyed than in Hurricanes Katrina and Rita.

As of Tuesday, State Farm had received 35,409 auto claims, more than its auto claims after Hurricanes Frances and Jeanne combined.
Last year Hurricane Charley caused the most auto claims for the state's largest auto insurer, 19,440.

Progressive wouldn't provide claim numbers but said Wilma's auto claims exceeded the number of claims for any of last year's hurricanes.

"Wilma is significantly bigger than any one storm last year," Progressive spokesman William Perry told the Palm Beach Post. "And it's bigger than any two storms last year."

The flood of claims is slowing State Farm's response time to policyholders. Spokesman Chris Neal said customers should expect to wait about 20 days after filing a claim to see an adjuster for an estimate.

Neal said the company hopes to reduce that wait time by bringing several mobile adjuster offices to the state. Its mobile offices were working in Louisiana and Mississippi but are expected to arrive in Florida this week.

The flood of claims isn't having the same effect on Progressive.
On average, Progressive customers can see an adjuster four days after filing a claim and get their checks in 4 1/2 days, Perry said.

Not all Florida auto insurers are being swamped with claims. Nationwide Insurance has received 1,900 auto claims since Wilma blew through the area.

Last year Hurricane Charley resulted in 3,000 auto claims for Nationwide, the most of any of the four storms.

"There are fewer total losses, and more of the damaged vehicles are repairable," Perry said.

State Farm said the body shops with which it has agreements are reporting average delays of 60 to 90 days.

Wind Damage Claims Denial Lawyer

Wed, 02 Nov 2005 00:00:00 -0800

Wind Damage Claims

While thousands of homes in coastal areas of the Gulf Coast were flooded by the recent hurricanes, homes in inland cities were damaged by wind. Standard homeowner’s policies cover damage from wind or wind-driven rain but insurance adjusters are using a disclaimer about flooding to get out of paying claims on homes that were only damaged by wind. If your insurance company has denied your homeowner’s insurance claim our attorneys can help.

Most homeowner’s policies contain a sentence excluding “flood, surface water, waves, tidal water, overflow of a body of water or spray from any of these.” Insurance adjusters are denying homeowner’s claims in flooded areas like New Orleans and Biloxi but they have also denied thousands of claims in non-flooded areas like Baton Rouge. The denial of homeowner’s claims in non-flooded areas is fraudulent and a blatant act of bad faith.

People purchase insurance to provide assistance in times when we need help the most. It is unconscionable that insurance companies choose profits over helping their clients who have paid substantial money for coverage.

Parker & Waichman, LLP has helped victims of all types of bad faith insurance claim denials receive the compensation that they deserve. If your wind damage claim has been denied, please fill out the form at the right for a freecase evaluation by a qualified attorney.