Negotiations between Louisiana Citizens Property Insurance Corp.and plaintiffs' attorneys over more than $100 million are off to arocky start following a U.S. Supreme Court decision to not delaythe execution of the class-action judgment against the last-resortinsurer.

According to Citizens CEO Richard Robertson, the state-runinsurer and plaintiffs' attorneys continue to meet in an attempt toresolve the litigation with a class of more than 18,000policyholders who say the last-resort insurer failed to start theclaims-adjusting process within the time frame set by law followingHurricanes Katrina and Rita in 2005.

The state Supreme Court reinstated what is now a judgment ofmore than $100 million against Citizens, paving the way for theCitizens' policyholders to collect $5,000 each. However, the amountof people eligible to join the class could rise.

Citizens asked the U.S. Supreme Court to delay the execution ofthat judgment while the last-resort insurer prepares an applicationfor the high court to hear the case, but the court rejected therequest, prompting Citizens to seek a settlement with plaintiffs'attorneys.

Citizens presented an $80 million offer to settle the case.Attorneys representing the class of plaintiffs countered with anoffer of $123 million to be paid in three installments.

Wiley Beevers, who serves as class counsel, says InsuranceCommissioner Jim Donelon has “made a public spectacle of theso-called 'offer' of $80 million, but he and the Citizens' boardfail to understand that we have a judgment for $104 million plus$10,000 per day in interest until the funds are paid.”

Donelon, meanwhile, says the state has “several arrows left inour quiver,” noting that Citizens can still make a case for arehearing before the state Supreme Court, appeal to the U.S.Supreme Court, pass a legislative fix or negotiate the award.