Mississippians screwed: State Farm settles Katrina cases

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The nation's largest insurance company has settled out of court with more than a dozen Mississippi policyholders whose lawyers were barred from representing them in lawsuits against the insurer over Hurricane Katrina damage, according to court filings Thursday.

State Farm Fire and Casualty Co. initiated or reopened settlement talks with policyholders after a federal judge in April disqualified their attorneys from handling up to 200 suits against the Bloomington, Ill.-based company.

At least 13 homeowners were representing themselves, without an attorney, when they agreed to settle their suits for undisclosed terms, Thursday's court filings show.

"We've always been willing to re-engage, one on one, with our customers about their claims," State Farm spokesman Phil Supple said. "We're willing to speak with them whether they're represented by counsel or not."

State Farm made settlement overtures in letters it sent to policyholders whose lawyers were disqualified last month by U.S. District Judge L.T. Senter Jr. in Gulfport, Miss.

Clarion Ledger