Judge Denies State Farm Motion to Dismiss Miss. Lawsuit

May 9, 2007

  • May 9, 2007 at 4:39 am
    Jake says:
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    Poor State Farm. Instead of braging about how big they are and spending tons on advertising this fact they should focus on paying legitimate claims!

  • May 9, 2007 at 4:46 am
    Gill Fin says:
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    \’State Farm representatives have contended that the company simply wanted to clarify to whom any money would be owed so duplicate payments could be avoided.\’

  • May 9, 2007 at 4:52 am
    Yeah, right says:
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    This is just a stalling tactic by State Farm. Learn to digest the information.

  • May 9, 2007 at 4:58 am
    Jake says:
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    I read the whole article. Geting a SBA loan has nothing to do with State Farms obligation to pay claims. Or reason for a dismissal of law suit. You must be a State Farm Agent …..\”Who\’s sorry now!\” Remember those commercials….. Ha Ha

  • May 9, 2007 at 5:48 am
    Mark says:
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    Jake,

    You must be an idiot. HA HA

  • May 9, 2007 at 5:56 am
    Jake says:
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    Poor Mark … feelings of Inadequacy causes him to say things mean to others to make him feel better. Just make sure you don\’t say the wrong thing to some one face to face or you will find yourself in the hospital. ha ha

  • May 10, 2007 at 7:31 am
    Jewel says:
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    I don\’t think threats are allowed on this board.

    I only skimmed the article but it did seem like an odd argument to me. Pretty creative though, huh? Attorneys definitely have some interesting arguments.

    Hey Gill-

    Aren\’t you surprised fakeadjustjoe didn\’t find his way here yet? Did he post at all yesterday? Uh oh- maybe he got arrested for panhandling!

  • May 10, 2007 at 7:55 am
    claimsguy says:
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    Thank God for people like Jewel. A refreshing voice in the insurance wilderness

  • May 10, 2007 at 8:46 am
    Reality says:
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    Insurance Journal is not responsible for the content of the message below.

    Subject: RE: Ratings For the bad boys
    Posted On: May 9, 2007, 6:19 pm CDT
    Posted By: Melanie
    Comment:
    Michael Kunzelman

    Associated Press

    Smiley N. PoolThe dallas morning news
    State Farm threatened to fire an engineering firm if it didn\’t have its reports blame water for damage, e-mails say.
    NEW ORLEANS — Attorneys for homeowners suing State Farm Insurance Cos. after Hurricane Katrina long have accused the insurer of pressuring engineers to alter reports on storm-damaged homes so that policyholders\’ claims could be denied.

    Now, some of the lawyers say they have evidence: internal e-mails from an engineering firm that helped State Farm adjust claims after the Aug. 29, 2005, hurricane destroyed thousands of homes on the Mississippi Gulf Coast.

    State Farm denies pressuring engineers to change their conclusions, but the e-mails, obtained Tuesday, indicate the company was threatening to dismiss Raleigh, N.C.-based Forensic Analysis & Engineering Corp. less than two months after Katrina.

    State Farm and other insurers say their homeowner policies cover damage from wind but not high water, including wind-driven storm surge.

    Zach Scruggs, an attorney who is part of a legal team that sued State Farm on behalf of hundreds of homeowners, said Forensic turned over the e-mails as part of the pretrial discovery process for one of the lawsuits.

    The e-mails \”confirm everything that we have always suspected,\” Scruggs said. \”What it says is pretty shocking. This outlines the whole scheme of theirs.\”

    The e-mails exchanged between Forensic President and CEO Robert Kochan and Randy Down, the firm\’s vice president of engineering services, outline complaints against their firm\’s work from Alexis King, a State Farm manager in Mississippi.

    Kochan, in an e-mail dated Oct. 17, 2005, says the firm will continue working with State Farm, but he talks about needing to \”redo the wording\” of a report after a discussion with King \”such that the conclusions are better supported.\”

    The e-mail also says King didn\’t want local engineers to inspect properties because they were \”too emotionally involved\” and were \”working very hard to find justifications to call it wind damage when the facts only show water-induced damage.\”

    In a reply dated Oct. 18, 2005, Down questioned the insurer\’s motivations. He suggested that on another occasion, State Farm asked the firm to remove information from a report because \”they would then have to settle.\”

    \”I really question the ethics of someone who wants to fire us simply because our conclusions don\’t match hers,\” Down wrote.

    Mississippi Attorney General Jim Hood, in Washington after testifying yesterday before the Senate Commerce Committee, said he knew about the e-mails for months as part of his criminal grand-jury investigation.

    \”It is a document that clearly shows State Farm used engineers and coerced engineers to write a report like they wanted,\” Hood said.

    Down, who has left Forensic, said that the threat to fire the company came \”out of the blue.\”

    \”The question was why,\” Down added. \”The initial internal discussion I heard is that they didn\’t like our reports.\”

    State Farm spokesman Phil Supple rejected the notion that the company pressured engineers to alter their conclusions.

    \”Our employees are committed to conducting themselves in an ethical and appropriate manner,\” he said.

  • May 10, 2007 at 9:44 am
    Jewel says:
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    Not exactly sure what the point of your post is Reality.

    I do know, however, that there is information from the original article that has been edited out of this one. This occurred in several newspapers.

    When you leave a post, it is generally nice to also leave a comment as well. I assume you think this is proof of wrongdoing. All I see is a newspaper article (missing information) that doesn\’t prove anything at all.

    Thanks though

  • May 10, 2007 at 10:37 am
    Do tell says:
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    Ok show me>

  • May 10, 2007 at 10:40 am
    Staged says:
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    Quite a number of years back I was involved in an auto accident where the driver of the other vehicle ran from the scene, injured, I was unable to pursue him. State Farm, instead of settling my legitimate claim with them, had me criminally prosecuted by a State Farm hired lawyer that was not even a member of the district attorney’s staff, saying I “staged” the accident. The most damaging testimony at my criminal trial was the engineering report (paid for by State Farm) from the accident reconstructionist. That report was full of severely inaccurate and damaging conclusions. I was convicted of felony insurance fraud, a crime I did not commit. A number of years later, after statute of limitations had expired, the real person responsible surfaced. Not only have I never received any money for my losses, I’ve never heard a word from State Farm or my former agent apologizing for what they did to me.

    With the major insurance corporations, including State Farm influencing the courts, civil & criminal with insurance industry biased reports, it’s just a matter of time before all our rights are taken away from us when it comes filing insurance claims.

    I’m sure State Farm has repeatedly reminded the engineering firms who pays the bills.

  • May 10, 2007 at 11:11 am
    Jewel says:
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    http://www.insurancejournal.com/news/national/2007/04/12/78669.htm

    No problem. Same basic article with information missing and in different order. This happened with another article as well.

    Of particular interest is this missing piece:

    \”Kochan, in an interview, said plaintiffs\’ attorneys are taking the e-mails out of context. King \”just felt like we weren\’t doing a technically accurate job,\’\’ but she wasn\’t pressuring Forensic to change conclusions so that claims could be denied, Kochan said.\”

    Another reason not to believe everything you read (or don\’t read) in the news.

  • May 10, 2007 at 1:26 am
    Melanie says:
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    Show the whole story>

  • May 10, 2007 at 1:40 am
    Linda says:
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    Exactly what is your point here?

  • May 10, 2007 at 1:43 am
    Jake says:
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    That State Farm is a snake trying to not pay legitmate claims

  • May 10, 2007 at 1:43 am
    Jewel says:
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    Please go to the link yourself. I don\’t feel like trying to post such a large article.

    I also actually have worthwhile things to say and don\’t post articles without leaving a comment.

  • May 10, 2007 at 1:46 am
    Jewel says:
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    Linda-

    Melanie wanted me to post the whole story. I provided a link but she is too lazy? to go there herself. This is the mentality of most of these people who just believe what they read and make up \”facts\” rather than do research.

    Jake\’s conclusion is interesting considering he doesn\’t know the facts.

    Maybe they did deny legitimate claims, maybe they didn\’t. The posted article doesn\’t prove anything and, as I said, wasn\’t the whole story.

    Anyway Linda, hope you have a good afternoon and don\’t go too crazy with all these nutty posts on here.

  • May 10, 2007 at 1:53 am
    Linda says:
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    All good afternoon to you too Jewel. Too much to do this afternoon to think about the nutty posts.

  • May 10, 2007 at 2:14 am
    Staged says:
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    The insurance industry, not just State Farm, fight cases like this so that they don’t set a precedence to open the flood gates for future cases to be ruled against them. Insurance policies are written by teams of, very sharp, attorneys that are only out to protect the industries green back babies from being lost in these types of situations. Any plaintiff (and his/her lawyer) who gets an insurance company into court still has an uphill battle to contend with fighting what seems to be a bottomless pit of financially backed attorneys for the insurance industry.

    You want to talk about “facts”. . . I know first hand what insurance companies are capable of doing, especially if they have the judge on their side. Chances are that many of the judges who preside over many of these cases has done legal work for the insurance industry at one time or another before becoming judges. It’s nice to see that the judge in this instance has sided with the plaintiff, a rare occasion indeed.

  • May 10, 2007 at 3:31 am
    Smitty says:
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    The story is poorly written, Loans have to be paid back and low interest is still interest.

    Duh.

    I could see the logic if the SBA gave grants contigent that they receive any offsets towards any recoveries but accoring to this story that isn\’t the case.

  • May 10, 2007 at 4:06 am
    Hopre says:
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    The Fraud will all come out , State Farm and not hide the truth.

  • May 10, 2007 at 4:12 am
    Gill Fin says:
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    the SBA has been added as a lienholder, and as such by definition may have a claim against any future insurance payout, including, as in this case a lawsuit award.
    If SBA language states that future insurance proceeds go to them, I can understand why an insurer may want clarity
    before they settle a claim.
    That would be a reasonable explanation about why State Farm would want clarity.
    That explanation isn\’t the conspiracy theory that those who applied for employment with State Farm and were denied would accept, but hey, you can\’t win them all.

  • May 10, 2007 at 4:25 am
    hypocrisy says:
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    Then these righteous ones will repil: Lord ,when will we all see the pain !!!greed will hungry us. the pain when we will not see the truth> Open your eye,s. refused to help each other will end the peace. and the war will not end fast . This is the only life we have. Stand up wake up This is the U.S under one God . Do you all know the money will never give us a peace no matter how hard we try. Fight for all >> You try to look like upright peolpe . How is it woring for you.

  • May 11, 2007 at 11:17 am
    Mark says:
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    Wasn\’t there another insurance company who just finished up a case like this in MS?
    I know from personal experience that under the best of conditions the SBA is not a fun organization to deal with. That said, it seems strange that State Farm would have to file suit to get an answer to their question.

  • May 11, 2007 at 1:29 am
    faith says:
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    Posted By: Melanie
    Comment:
    EDWARD B RUST, JR (RUST) IS PRESIDENT, CHIEF EXECUTIVE OFFICER,AND CHAIMAN OF THE BOARD OF STATEFARM FIRE AND CASUALTY COMPONY ( STate farm ) , and a resident citizen of Illinis, plaintiffs, who are adult resident citizens of New Orleans, Louisiana, owned a vacation home in Pass Christian, Mississippi that dewelling , the personal property in it , and its loss of use were covered by a homeowners policy issued by State Farm by andthrough Steve Saucier, Further,\”plaintiffs reasonably relied upon both expressed and implied representations mabe by and implied State Farm and Steve Saucier, the plaintiffs \” homeowners policy would fully cover any and all property losses due to the hurricane. Katrina.

  • May 11, 2007 at 2:26 am
    Jewel says:
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    Please translate into the same English that intelligent people use.

    Thank you

  • May 11, 2007 at 2:30 am
    Linda says:
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    Jewel, you crack me up sometimes. I did not understand that post either.

  • May 11, 2007 at 5:49 am
    Melanie says:
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    Intelligent people have called Mr Rust of State Farm for help this is just one of 1000000. In English. United States Court Southern District of Mississippi Clvil , Action – Ed Rust to Clarify his act as CEO. I will read if you do the same. Ladys.

  • May 11, 2007 at 5:56 am
    Linaggggggggg says:
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    March 7, 2007, 3:30 pm CST
    Posted By: Linda
    Comment:
    I am sure State Farm paid all the flood/water claims to AUTOS with comprehensive coverage.
    Do you really Linda??

  • May 11, 2007 at 6:19 am
    Mary B. says:
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    Jewel – if you fashion a hat out of tin foil then you will be able to read and comprehend post from faith.

    Melanie – it\’s your whole life and not hole life okay? I do not want to know about your hole, okay?

  • May 11, 2007 at 6:57 am
    History says:
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    People I trusted my good neighbor. To find out my neighbor lies makes me sick…About fraud ; intentional perversion of truth in order to induce another to part with something of value or surrender a legal right. an act of deceiving or misrepresenting. TRIck!!!! this is State Farm one that is not what it seems or represented to be. Will ?? Read all the storys. You will see.

  • May 12, 2007 at 7:22 am
    Melanie says:
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    Call Anita Lee McClatch Newspapers. Ask Her About State Farm. Get all the News

  • May 12, 2007 at 6:56 am
    LL says:
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    Melanie, it appears that your claim with State Farm was not settled to your satisfaction. Did you have flooding but not a flood policy in place? Whatever the reason, it makes your observation of that company not an objective one. Every company has a small number of disgruntled customers.

  • May 12, 2007 at 6:57 am
    Mary says:
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    May 2, 2007, 2:44 pm CDT
    Posted By: Mary B.
    Comment:
    You lost your home and went into BK because you are irresponsible and a total moron. Place the responsibility for your own inactions at your feet and quit blaming others. Your \”victimhood\” makes me vomit in my mouth.

  • May 13, 2007 at 10:45 am
    Investigate says:
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    It is the position of State Farm that the hurricane actually improved this kitchen. We should be charging the homeowner for improvements, not paying him for damages.

    *******

    This house died of old age. Not covered.

    *******

    I doubt there was even a house here to begin with. Investigate \”homeowner\” for insurance fraud.

    *******

    It appears that some rogue appliances pushed a car into this house. I\’m absolutely sure that the policy doesn\’t cover damage from cars being pushed by rogue appliances.

    *******

    OK, if the car ran into the house, then it\’s covered. But it looks to me like this happened the other way around.

    *******

    If you look closely, you\’ll see that it\’s the porch that\’s damaged, not the house itself. We sell homeowner\’s insurance, not porchowner\’s insurance.

    *******

    This house just quit. It doesn\’t look like it made even the slightest effort to weather the storm. We don\’t cover quitters.
    Subject Posted By Posted On
    RE: RE: State Farm is ROTTEN TO THE CORE

  • May 14, 2007 at 12:04 pm
    the Voice says:
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    We did. The new contractor is well-known in our town, and came highly recommended, having a reputation for both fine work and honesty. The repairs cost $15,000 more than State Farm had given us. We carefully and honestly documented every penny of cost. State Farm refused to pay. We had to borrow the $15,000 on credit cards to pay our contractor. We hired an attorney who cost us another $15,000, which we had to borrow on credit cards.

    In July of this year, 2005, our case went to non-binding arbitration–a procedure the courts impose on hapless victims which accomplishes nothing more than wasting the unfortunate consumer\’s money and fattening all the attorneys involved. The arbiter, an attorney of more than 30 years experience in real estate law, ruled in our favor and awarded us 100% of everything that we asked for–100% of the repairs, 100% of our costs, and 100% of our attorney fees. But because it was a \”non-binding\” arbitration, State Farm thumbed its nose at us and simply refused to pay, and commenced to bargain with us.

    The arbiter told State Farm, at the arbitration, right in front of us, that if they pushed this to a jury trial, they would probably lose even more. I suspect that\’s the only reason we got as much as we did. Rather than have to borrow another $20 or $30 thousand and wait another couple of years, we caved in and accepted $29,100, allowing them to steal $3500 from us.

    Now think a moment, if you will: How many ordinary little homeowners can afford to come up with $17,000 in attorney\’s fees and costs to go after an insurance company? How many even have that kind of borrowing power? Not many, you say? Well then, those are the majority of State Farm\’s victims–the people without a voice, without the money to buy justice, the people who have no choice but to give up and go away. Which is, of course, exactly what State Farm expects, and why it is so profitable for them to automatically attempt to cheat every claimant at least a little bit, and some a lot.

  • May 14, 2007 at 10:59 am
    LL says:
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    Crist was a mistake for insurance companies. But the other guy was even worse. When you only have 2 devil to choose from….

  • May 14, 2007 at 11:40 am
    GA says:
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    Adonis of Stone Mountain GA (05/06/05)
    My home was completely burglarized with all my contents and belongings stolen on or about weekend of March 1, 2005. I have provided State Farm with all documentation within my capacity including receipts for major purchases. It is now May 5, 2005 with no resolution in sight. My family is not able to go back home due to the fact we have nothing. I have been exercising a great deal of patience with the situation because i have been out of state to my grandmother being in her last stage with cancer. Now i am making preparations to return and i have nothing.

    State Farm has requested me to do a statement under oath with their attorney. i have complied with all they have asked. I think its completely absurd that even on this date with all my belongings and furniture stolen they are not providing me with any level of satisfaction nor statute of time in which this claim will be handled. I know based on conversation and dialogue with State Farms Attorney that i am being depicted as the bad guy as opposed to the victim i have become in this lost. I have paid my homeowners insurance premium for 5 years with no problems and never has a claim been filed. Now i have been victimized in a burglary and i the insured cant get any satisfaction from State Farm.

    The comments and statements from the State Farms\’ parties involved is such of a racially or demographically based insinuation. As if i am committing some type of fraud. I would like to have this issue addressed and researched to ensure that as an insured consumer i have been treated fairly and rationally without a biased or personal interest by representatives of State Farm Insurance Company.

  • May 14, 2007 at 1:18 am
    Mary B. says:
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    History, LL and Mary – you make no sense and you are sad.

    Melanie – hire Agent Mulder from the X-files and maybe you can find the Truth out there….

    GA – play the race card a little \”louder\” and you will get the help you \”deserve\”.

  • May 14, 2007 at 3:35 am
    The real world says:
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    may god help you mary. I hope your pay is a lot. To keep you so out of the truth.You May have no shame.

  • May 14, 2007 at 3:46 am
    Jewel says:
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    the real world…

    Please give me your address so I can send you a complimentary (that means free!) copy of the \”gibberish\” to English dictionary.

    Thanks!

  • May 14, 2007 at 3:46 am
    The S?F says:
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    Maybe State Farm was compelled to break its long-standing policy against donating to politicians because none has ever offered such a direct trade of campaign cash for political access. $25,000 for a year of in-person meetings with the governor and insider phone calls sounds like too good a deal to pass up. But State Farm is spending policyholder money to buy that access. The insurer should ask the governor to refund the money, and recommit to its no-contribution promise.

    Maybe State Farm was compelled to break its long-standing policy against donating to politicians because none has ever offered such a direct trade of campaign cash for political access. $25,000 for a year of in-person meetings with the governor and insider phone calls sounds like too good a deal to pass up. But State Farm is spending policyholder money to buy that access. The insurer should ask the governor to refund the money, and recommit to its no-contribution promise.

  • May 14, 2007 at 3:50 am
    for the sad one. says:
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    God can not help this kind of mind. I willPray !! you my wake up to the sadness of you heart.

  • May 14, 2007 at 3:57 am
    Jewel says:
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    Would you like a parting gift too?

  • May 14, 2007 at 3:59 am
    looking at you kid says:
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    At the same time, Crist\’s gubernatorial campaign has taken large contributions from the same interests — $763,507 in campaign contributions from the insurance industry through Oct. 6, the most among individual candidates in the general election.

    At the same time, Crist\’s gubernatorial campaign has taken large contributions from the same interests — $763,507 in campaign contributions from the insurance industry through Oct. 6, the most among individual candidates in the general election.

  • May 18, 2007 at 11:22 am
    Kelly says:
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    Sometimes the content that is written on different types of blog, can be severly copied… You just don\’t want your blog content to be copied and not to receive credit..



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