A federal district court judge affirmed an earlier decision that a suit brought by Mississippi’s attorney general against insurers for flood losses stemming from Hurricane Katrina should be heard in state court, where carriers perceive they will be at a disadvantage.

U.S. District Court Judge for the Southern District of Mississippi, L.T. Senter Jr., sitting in Jackson, Miss., ruled on Tuesday that a March decision by U.S. District Court Judge Tom S. Lee was correct in ordering that a suit brought on flood claims is a state issue and belongs in the state court.

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