State Farm has expressed its surprise and concern over the ruling yesterday by US District Court Judge LT Senter in Broussard vs State Farm, a case which revolved around damage caused bu Hurricane Katrina.
“We did not expect this decision,” said Kim Brunner, executive vice president, secretary, and general counsel for State Farm. “Testimony of expert witnesses showed that damage to the Broussard home was overwhelmingly caused by water and not wind.”
The judge ruled that State Farm did not present sufficient evidence to prove what damage to the Broussard home in Biloxi, MS was caused by wind and what was caused by water. He further said that the Broussard's only needed to prove a direct physical loss.
“We believe that the ruling is inconsistent with the insurance contract and Mississippi law,” said Brunner.
State Farm also expressed disappointment with the jury's finding the company liable for punitive damages in the amount of $2.5m, which it may appeal.
