Even though a federal judge rejected a proposed State Farm class-action settlement for Mississippi homeowners with storm-surge damage from Hurricane Katrina, attorneys on all sides of the dispute expressed confidence the controversial deal can be fixed to gain the court's approval.

U.S. District Court Judge L.T. Senter Jr. said in a Jan. 26 ruling that besides failing to justify as much as $20 million in attorney fees for the class-action settlement, the proposal lacked information on a multitude of points, and he could not call it "fair, just, balanced, or reasonable."

State Attorney General Jim Hood issued a statement saying he was "confident that Judge Senter will make the plaintiffs and State Farm fix the problems he has raised in his order."

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