Get out your best seersucker suit! The Rigsby sisters are takingon State Farm…in a courtroom…more than seven years after HurricaneKatrina!

Having covered the courts for a daily New Jersey newspaperbefore I got myself into the depths of insurance-news reporting,there has been no greater opportunity for me to geek-out on courtdocuments than Rigsby v. State Farm Fire and CasualtyCo.—a whistleblower lawsuit filed in Mississippi in April2006.

The case is finally scheduled for trial March 25 after years ofpre-trial motions to dismiss the case, limit its scope, anddisqualify potential witnesses. Not to mention the downfall of theRigsbys' prominent plaintiffs' attorney and the death of SeniorDistrict Judge L.T. Senter, whose rulings were always a good read.

I'm disappointed if you don't know the details. You mustremember the report on ABC News20/20.

There they were, independent insurance adjusters Cori and KerriRigsby—with their State Farm jackets on and their allegations of “agood neighbor gone bad.”

The Rigsbys' False Claims Act lawsuit alleges State Farmdoctored reports after Katrina to shift losses onto the federalgovernment by calling wind losses, flood losses. Flood lossesaren't covered by a standard private homeowners' policy. Thegovernment's National Flood Insurance Program (NFIP) handles theselosses, if you have a policy.

The Rigsbys stole thousands of State Farm documents they sayprove the nation's top insurer was up to no good. The sistersbrought them to state and federal investigators and (cue adeparture off a private plane!) Richard “Dickie” Scruggs, oftobacco fame. The “Tort King” himself.

(I leave it up to you to find out what state and federalinvestigators did with this information. There was a lot of talk,but, in the end, not much action. State reports didn't praise theinsurer, but didn't condemn their practices. The feds decidednot to get involved in the case.)

Filed under seal, Scruggs made the Rigsby lawsuit public andfiled many more so-called “wind vs. water” claims—as did manyothers. We were introduced to the tongue-tying “anti-concurrentcausation clause.” Plaintiffs' attorneys said the policy languagewas ambiguous. Insurers' lawyers said otherwise. After lots ofcourtroom argument, insurers prevailed.

“If this isn't criminal, nothing is,” Scruggs told ABC of StateFarm's post-Katrina actions.

Whoops.

Apparently Scruggs did not think attempted bribery of aMississippi circuit court judge seemed criminal. Scruggs waslooking for a favorable ruling in a suit over the split of asettlement in a separate State Farm Katrina-related case. However,promising a federal judgeship to a circuit court judge wearing awire is not advised. Scruggs is serving some time in afederal prison.

But the Rigsbys picked up new representation and they are ontheir way. Hey, I give them a little credit. I have no idea howmuch this has cost them, or who's picking up the tab. They could'vegiven up long ago. Some things came to light that were prettyembarrassing too. They were paid by Scruggs as “consultants.”That's another no-no. What they can testify about has been narrowedto one house owned by Thomas and Pamela McIntosh—the only home forwhich a judge has said the Rigsbys have first-handknowledge of State Farm's alleged government fraud.

(Another note: McIntosh settled a separated suit against StateFarm and, in going so, cleared the insurer of wrongdoing.)

After State Farm's last attempt to dismiss the case was struck down,August J. Matteis Jr. of Weisbrod Matteis & Copley, nowrepresenting the Rigsbys, said the sisters are “absolutely ready togo.”

“They are excited and anxious to do this,” he added.

State Farm said it's “eager to answer these allegations” and is“confident the evidence at trial will show its conduct was fullyappropriate.”

Well, then. Ding. Ding.