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

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

In a comment during a hearing last month on legislation he is sponsoring that would repeal the McCarran-Ferguson Act's limited antitrust exemption for insurers, Sen. Lott classified himself as one of Mississippi's "slab-owners."

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

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

Sen. Lott has made clear over the last year to all Washington reporters who come in contact with him his scorn of the insurance industry over the handling of his claim.

However, he has declined repeated requests by National Underwriter to discuss events relating to his case or his efforts to enlist other members of Congress to join in sponsoring the antitrust legislation, which insurers view as having a punitive effect.

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

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

At issue has been State Farm's denial of claims based on its position that they were barred due to policy language excluding flood damage. Plaintiffs have argued that wind damage must be considered, as well.

Dickie Scruggs has said he plans to try the case but is aware Sen. 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 honoring the terms of the settlement that are confidential."

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

This article originally appeared in The National Underwriter P&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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Sen. Lott Weighs Court Battle with State Farm

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