Judge knocks down punitives tab in state farm Katrina case.A federal judge who pre-empted jury deliberations in a Hurricane Katrina  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. coverage case by declaring State Farm Fire and Casualty Co.
liable for a Mississippi policyholder's home, now has determined
that same jury erred when it ordered the company to pay $2.5 million in
punitive damages Monetary compensation awarded to an injured party that goes beyond that which is necessary to compensate the individual for losses and that is intended to punish the wrongdoer. .
U.S. District Judge L.T. Senter reduced the damages verdict to $1 million. In a directed verdict A procedural device whereby the decision in a case is taken out of the hands of the jury by the judge. A verdict is generally directed in a jury trial where there is no other possible conclusion because the side with the Burden of Proof has not offered sufficient evidence to , Senter previously ordered the insurer to pay the full $223,292 cost of policyholders Norman and Genevieve Broussard's Biloxi, Miss., home, which had been destroyed by Katrina. The judge took part of the deliberations out of the jury's hands after determining "no reasonable juror juror n. any person who actually serves on a jury. Lists of potential jurors are chosen from various sources such as registered voters, automobile registration or telephone directories. " could conclude the insurer acted properly when it denied the couple's claim. The jury was left to determine only whether punitive damages should be assessed, and at what amount they would be set. While concurring with the jury that the company had acted "in such a grossly negligent way as to evince e·vince tr.v. e·vinced, e·vinc·ing, e·vinc·es To show or demonstrate clearly; manifest: evince distaste by grimacing. willful, wanton, or reckless disregard reckless disregard n. grossly negligent without concern for danger to others. Actually reckless disregard is redundant since reckless means there is a disregard for safety. (See: reckless) for the rights of the plaintiffs," Senter noted the policyholders had suffered only economic injuries, not physical injuries. At nearly 12 times the compensatory damages A sum of money awarded in a civil action by a court to indemnify a person for the particular loss, detriment, or injury suffered as a result of the unlawful conduct of another. in the case, the $2.5 million judgment was thus somewhat excessive, with $1 million a "more appropriate" amount, Senter wrote. While pleased to see the sum reduced, State Farm still intends to appeal both Senter's directed verdict, and the jury's award of punitive damages, to the 5th U.S. Circuit Court of Appeals, according to company spokesman Fraser Engerman. "We believe there still are critical legal issues that need to be addressed, including the location of the trial, which party should have the burden of proof, and the fact that the jury was not allowed to deliberate the facts of the case" Engerman said. On Feb. 14, State Farm announced that it will no longer write new property/casualty and commercial insurance policies in Mississippi. Top Writers, Miss., 2005-Homeowners Multiperil Group market shares (%) are based on direct premiums written. State Farm Group 30.3% Southern Farm Bureau Group 20.8 10.5 Allstate Insurance Group 7.2 Nationwide Group 5.4 Farmers Insurance Group Source: Best's State/Line Reports |
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