Judge Puts Settlement on Katrina in Question
By JOSEPH B. TREASTER
A federal judge in Mississippi, citing the need for more information, has rejected — at least temporarily — a settlement by State Farm Insurance that was expected to provide several hundred million dollars to help policyholders rebuild homes destroyed by Hurricane Katrina 17 months ago.
In an eight-page order, Judge L. T. Senter Jr. of Federal District Court in Gulfport, Miss., said he was rejecting the agreement because it did not provide enough information for him to conclude that it was “fair, just, balanced and reasonable.”
State Farm said last night that it had expected the agreement to be approved and that it now looked forward to addressing the judge’s concerns.
The lead trial lawyer in the case, Richard F. Scruggs, and Mississippi officials also expected court approval.
Last night, Mr. Scruggs and Jim Hood, the attorney general of Mississippi, said they were optimistic that the agreement would be revived. Mr. Hood said he was confident that State Farm would “fix the things that need to be fixed.”
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