Mississippi: Judge May Consider Consolidating 1,000 Lawsuits

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Six lawsuits against insurance companies over damage claims from Hurricane Katrina once set for trial in 2007 have been delayed by U.S. District Judge L.T. Senter Jr.

Senter also says he is willing to consider consolidating some of the 1,000-plus lawsuits.

The Scruggs Katrina Group filed lawsuits against Nationwide Mutual Insurance Co, State Farm Insurance Co., and Allstate Insurance Co. Richard “Dickie” Scruggs, a nationally prominent Mississippi attorney who heads the group, had hoped hundreds of policyholders could be represented in three trials.

The State Farm lawsuit covered 691 policyholders; 310 sued Allstate and 244 were listed in the Nationwide complaint.

U.S. Magistrate Robert H. Walker decided the policyholders would have to sue separately.

Walker met with all sides in August to select two cases against each insurance company for expedited trials. The agreement was that the cases would involve simple issues rather than more time-consuming and complex claims.

Scruggs’ group then had to amend its lawsuits to represent individual policyholders. The first case set for trial was Wesley McFarland v. State Farm, scheduled to begin Jan. 29. Five more cases were to follow.

Senter, in a recent order, said when the State Farm lawsuit was amended with only McFarland as a plaintiff, a new claim was added accusing State Farm of a companywide scheme to defraud and deceive policyholders. State Farm answered the complaint, denying the scheme.

State Farm also asked that the trial be delayed, based on the new charge. Senter agreed to the delay.

No new trial date has been set.

In his ruling, Senter said he does not want to limit the remedies available to policyholders.

“At the same time,” he wrote, “the court has no interest in watching or umpiring a pleadings game that is played for a particular moment’s tactical purpose without regard to the overall goal of a just, speedy and inexpensive determination of every action.”

Senter also indicated in the ruling he is willing to consider consolidation of some cases, another reason to delay these trials.