On Thursday a federal court jury in Gulfport awarded no punitive damages in the latest State Farm Katrina wind vs. water trial. The jury, which had previously awarded the plaintiffs $52,300 in compensatory damages, took 80 minutes to reach its decision.
This is the kind of result where there is no real winner. The plaintiffs cannot be happy with $52,300 for a destroyed home, especially since they may have had over $50,000 in litigation expenses in the case.
State Farm is no doubt happier than the plaintiffs, but having a jury find that State Farm should have paid over $50,000 more than it did may not be good for State Farm’s long-term sales. State Farm also would have had $50,000 or more in litigation expenses, plus well over $100,000 in attorney’s fees. If you told me that State Farm paid its attorneys $300,000 in fees in the case I would not be surprised.
Earlier posts on trial:
Judge Senter Encourages State Farm to Settle Latest Wind vs. Water Trial