A federal appeals court panel in New Orleans rejected a lower court's ruling yesterday that permitted a Mississippi couple to pursue a hurricane damage claim even when policy-excluded flood damage was involved.
The decision by the 5th U.S. Circuit Court of Appeals overturns a ruling by U.S. District Court Judge L.T. Senter Jr. in Gulfport, Miss., that ruled out a portion of State Farm's policy language as ambiguous.
State Farm was sued by Long Beach, Miss., homeowners John and Claire Tuepker after their home was reduced to a foundation slab by Hurricane Katrina and the insurer refused to pay for the damage.
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