Lawyer Vows To Appeal Hurricane Case
By Daniel Hays
NU Online News Service, Nov. 11, 10:17 a.m. EST?A Mississippi attorney battling Allstate and State Farm for imposing an extra damage deductible prior to a hurricane said his firm will appeal to the State Supreme Court to have the case certified as a class action.
Richard F. Scruggs' comments yesterday followed a ruling last week by Jackson County Circuit Court Judge Robert Krebs in a case that Mr. Scruggs estimates could cost the insurers $40-to-$50 million if the suit were successful.
Judge Krebs in Pascagoula, Miss., ruled against the insurers who were seeking to have the case dismissed and the plaintiffs who were seeking class action status.
Mr. Scruggs said the judge in his rulings had certified them both for an interlocutory appeal–finding that the issues involved were significant enough to warrant examination by the high court.
Mr. Scruggs said he had no idea when or if the Supreme Court would accept or reject the case, but that his firm will file papers within three weeks.
At issue is a 2 percent home insurance damage deductible that was imposed in September of 1998 just before Hurricane Georges hit the Gulf Coast.
The suit was filed on behalf of 13,000 homeowners who sustained damage or destruction to structures in Jackson, Harrison and Hancock counties.
Mr. Scruggs said he would "guestimate upwards of $40 million or $50 million" is involved to cover the damages on average that each policyholder suffered.
Mississippi's Supreme Court has never adopted class action procedures and the case would be the first state-level case of its kind if allowed to proceed.
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