A mediation program developed by the Mississippi InsuranceDepartment to help settle damage claims to residential propertyfrom Hurricane Katrina is being called a "band-aid" by a famedplaintiff lawyer.

Richard Scruggs has filed a class action lawsuit againstinsurance companies on behalf of families whose homes were damagedor destroyed by the deadly Gulf Coast hurricane.

The lawsuit is currently tied up in litigation overjurisdiction, with efforts being made by the insurance industry tohave the suit tried in federal court--Mr. Scruggs wants the suittried in state courts, however.

"This is non-binding, just another avenue to give insureds helpin settling their claims," Mississippi Insurance CommissionerGeorge Dale said in disclosing the new program.

Mr. Scruggs said mediation only "sounds warm and fuzzy," becausethe results reached in mediation conferences are not binding oninsurance companies, and the mediators will be paid by theinsurers.

"Would you go to trial with a judge who is being paid by thedefendants?" he asked in a telephone interview.

Moreover, Mr. Scruggs said that to his knowledge only threejudges have been named as potential mediators. He added that 50,000claims by homeowners have been denied by insurers.

"Three mediators are like a drop of water in the Gulf of Mexico,given all those claims," Mr. Scruggs said.

The mediation process will be done at the expense of insurers,who are responsible for paying the mediator and the mediationadministrators at no costs to the insured, Mr. Dale said.

Anyone who has a claim related to Hurricane Katrina will be senta notice by their carrier on Jan. 6 to notify them that they areeligible for the mediation program, Mr. Dale explained.

Those who have already cashed a check labeled as a final paymentare not eligible, but any claims still under dispute are, hesaid.

The program is not open to commercial property or vehicleinsurance claims.

"This is a delay tactic to stall the inevitable lawsuit," Mr.Scruggs said, adding that the tactics are George Dale's attempt tomake hurricane victims feel he is doing something to help them.