5th Circuit affirms and adds to $21.6 million Katrina bad faith verdict
The AmLaw Litigation Daily has this report on the 5th Circuit Court of Appeals affirming a $21.6 million jury verdict against an insurance company in a Katrina-related bad faith case. The Court added an extra million for bad faith. The Plaintiff was a New Orleans grocer. The damages appeared to be mainly economic for loss of business income. The Plaintiff's lawyer was Philip Franco of Adams and Reese. It's gotta be the name. The Defendant was United Fire & Casualty Insurance Co. The story states:
Franco told us that his first witness was an insurance adjustor who initially reported to United Fire & Casualty that storm damage to the roofs of Robért's grocery stores allowed in rain and wind, destroying merchandise and forcing stores to close for repairs. Franco said the adjustor testified that United Fire & Casualty pressured him to change his report in a way that favored the company and then terminated him after he did.
This goes to show that there are huge verdicts out there with the right case, no matter how conservative the jurisdiction or court. Congratulations to Philip Franco, his litigation team (I'm sure he had a lot of help) and his client. A lot of people impacted by Katrina were pulling for you.
