Sen. Trent Lott, R-Miss., who has leveled his legislative gunsat the insurance industry, is deciding whether to roll out thelegal artillery for a courtroom battle with State Farm Insuranceand Casualty Company.

According to Zach Scruggs, an attorney with the Mississippi lawfirm that represents the senator, Mr. Lott is considering whetherto go to trial or accept a settlement offer from State Farm overhis claim for damages to his Pascagoula home stemming fromHurricane Katrina.

In a comment during a hearing last month on legislation he issponsoring that would repeal the McCarran-Ferguson Act's limitedantitrust exemption for insurers, Sen. Lott classified himself asone of Mississippi's "slab-owners."

He referred to the fact that the storm destroyed his houseleaving only the foundation slab.

Currently, the suit is scheduled for trial in federal court inGulfport, Miss., in June. But a court-ordered settlement conferencefor Sen. Lott's case is scheduled for Tuesday in Gulfport. Afederal magistrate has instructed both sides to submit memosincluding possible settlement figures.

Sen. Lott has made clear over the last year to all Washingtonreporters who come in contact with him his scorn of the insuranceindustry over the handling of his claim.

However, he has declined repeated requests by NationalUnderwriter to discuss events relating to his case or his effortsto enlist other members of Congress to join in sponsoring theantitrust legislation, which insurers view as having a punitiveeffect.

Yesterday Sen. Lott's staff referred all questions about hisState Farm case to the Scruggs law firm headed by hisbrother-in-law Richard "Dickie" Scruggs, who gained prominence forhis success in devising a legal attack on cigarette manufacturersfor health damage.

The latest issue arises from State Farm's January settlementproposal over Sen. Lott's claim. The settlement offer was made byState Farm as part of its proposal to pay an estimated $80 millionto up to 640 policyholders, including Sen. Lott and Rep. JamesTaylor, D-Miss. Rep. Taylor's case has been settled.

At issue has been State Farm's denial of claims based on itsposition that they were barred due to policy language excludingflood damage. Plaintiffs have argued that wind damage must beconsidered, as well.

Dickie Scruggs has said he plans to try the case but is awareSen. Lott hasn't ruled out a settlement.

State Farm spokesman Fraser Engerman, when asked about Sen.Lott's case, said, "Talk to Mr. Scruggs or Mr. Lott. We're honoringthe terms of the settlement that are confidential."

Sen. Lott has said he has not heard from State Farm since hespoke with an adjuster, but he commented, "I think that they'veheard from me a few times," the Associated Press reported.

This article originally appeared in The National UnderwriterP&C. For the complete article, please HYPERLINK"http://cms.nationalunderwriter.com/cms/NUPC/Breaking%20News/2007/03/23-LOTT-dp?searchfor=trent%20lott"click here.

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