Lawyers are awaiting a judge's decision on a motion by StateFarm to toss out a case brought by a Louisiana couple accusing thecarrier of price fixing and fraud in connection with theirhurricane damage claim.

The suit alleges that State Farm colluded with Xactware softwarecompany to artificially depress cost estimates for repairs.

U.S. District Court Judge Stanwood Duval Jr. in New Orleansheard preliminary arguments on the matter on June 13.

Plaintiffs Kathleen and Gordon Schafer contend that State Farminspected their property after Hurricane Katrina and, usingXactware's software which adjusts and estimates damaged propertyreplacement cost, supplied quotes that were below actual marketvalue.

The complaint references the price of siding vinyl, whichXactware set at $2.95 and State Farm quoted at $2.46, both of whichwere below the market value of $3-$4.25.

The Schafers have amended their complaint to seek class actionstatus, which would make the couple lead plaintiffs in a case onbehalf of all State Farm customers in Louisiana.

At last week's hearing the judge heard motions by the defendantsto dismiss the case and strike preliminary motions seekingclass-action status.

The Schafer's attorney, James A. Watkins, explained the case as,“The insured was paid x and should have been paid y.”

A memorandum in support of Xactware's motion to dismiss andstrike class allegations asserts that “Xactware never dealt withplaintiffs, visited their home, or played any role in how StateFarm adjusted their claim,” and as such “Xactware owed no duty toplaintiffs to advise them that State Farm used its own pricing datato adjust claims.”