$2.8M Katrina Verdict Against Allstate

[Omaha Steve]

Source: Associated Press

$2.8M Katrina Verdict Against Allstate

Monday April 16, 5:11 PM EDT

NEW ORLEANS (AP) — Allstate Insurance Co. must pay a Louisiana man who lost his home to Hurricane Katrina more than $2.8 million in damages and penalties, a federal jury decided Monday in a case that hinged largely on whether it was wind or storm surge that wiped out his house.

The jury found Allstate — which claimed most of the damage was due to storm surge, an event not covered in its policy — did not pay Robert Weiss enough money to cover wind damage to his home. The verdict included a $1.5 million penalty for the company's failure to pay the claim quickly enough.

"Our intention was to get what we were owed and to send a message that we would not be intimidated," Robert Weiss said after the verdict was read.

Allstate lawyer Judy Barrasso said in closing arguments that Katrina's winds were not strong enough to do the damage. She said Weiss already had received more than $400,000 in insurance payments — including $350,000 in federal flood insurance.

Read more: http://money.excite.com/jsp/nw/nwdt_rt_top.jsp?news_id=ap-d8ohudfo3&

[babylonsister]

1. K&R! EXCELLENT! If it takes lawsuits, so be it. nt

[rubberducky]

2. Wish that more get settlements like this.

Insurance companies ar more than willing to take our money. But, payouts?? Forget it. The Katrina victims are a national scandal. I can`t figure out why our dem candidates don`t point to this.

[saigon68]

3. Sue the crap out of Allstate

They are to Insurance what Halliburton is to minding hospital incubators

[Doctor_J]

4. Not much by itself, multiply it by 20,000 or so and it may wake them up

[Richard Steele]

10. But after this PRECEDENT, they may settle 20,000 cases out of court for reasonable amounts.

Or as we used to call it, "do what they were supposed to do in the first place".

[youngdem]

5. this is GREAT news. It sends a message

Policy holders may now get some traction now that Allstate has seen it is stupid as shit to have seated a jury in Louisiana right now on a Katrina victim vs. insurance company. The company was gonna get lynched even if it wasn't wrong on the merits, which it WAS.

This is really good news. It should mean that the companies may begin to see paying policy limits as the CHEAP way out of the Katrina mess.

Hope so.

[Lone_Star_Dem]

6. This is a beginning

That they had to be sued is another issue all together.

[aaronbees]

7. Small bit of good news....

on a horrible day. Nice to see some justice done for people who were hit so hard and so wronged.

[bbgrunt]

8. all they will learn is that it isn't profitable to screw the rich.

[merh]

9. State Farm took a hit in Mississippi and is now renegiotiating

the claims. Now maybe Allstate will do the same thing here. That just leaves Nationwide, MetLife, Farm Bureau, USAA and god knows how many others.

Maybe, just maybe the others will reevaluate without losing a lawsuit.

That is what we hope.

[pitohui]

11. yeah they'll renegotiate, these people will never see any 2.8 million

w. the threat of endless appeals hanging over their heads, they'll end up settling for way less, but at least it's some leverage

i hear there are folks from exxon valdez whose claims are not yet paid so i never put any faith in any of it until the victim actually has a check in the hand

i hate to be so negative and cynical but i guess i am negative and cynical

i would be mighty surprised if these people see the full amt of $$$ that the jury intends for them to see

[merh]

13. I don't mean the folks involved in this lawsuit

please don't treat me like a fool, I know how these things go, I'm more aware than you know.

I hope the other insurance companies, and there are many, stop fighting the claims and REEVALUATE and pay what is right.

These people will see what they are entitled to and that is what matters.

[jbnow]

12. I wish they'd bar their ads

for being deceptive. They've been on TV all the time here showing how completely trustworthy, caring and dependable they are. I can't imagine the reaction their victims would have seeing that crap several times a day.

It makes me angry every time thinking of all the people they have totally let down and are just ripping off. They know they are. They aren't trying to make an honest determination.

Companies can't lie about their products if they are cereal or toothpaste in ads. Truth in advertising. why can insurance companies mislead in their ads that way? (or political ads for that matter.)

[KamaAina]

14. Suck it, Somestates!

Time to find a new title sponsor for the Sugar Bowl!