Lawyers for a group involved in negotiating a class-action settlement with State Farm over Mississippi homeowners' claims from Hurricane Katrina have withdrawn their request to have the deal approved by a federal court. State Farm said the motion took them by surprise.
The Scruggs Katrina Group, in a notice to U.S. District Court Judge L.T. Senter Jr. in Gulfport, Miss., said they were taking the action based on indications the judge was against the proposal, as well as the fact they've reached a “stalemate” with State Farm Fire and Casualty Company.
Under the proposed settlement, the company would re-examine 36,000 claims from Hurricane Katrina in three coastal counties, and would be willing to make an immediate payment of 50 percent of policy value for homes that were wiped off their foundations.
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