Appellate court reverses district court ruling in Broussard (4/7/08)

On April 7, 2008, the U.S. Court of Appeals for the 5th Circuit issued a favorable ruling in a Mississippi case, Broussard v. State Farm. Broussard was the first Hurricane Katrina-related jury trial involving State Farm.

The Court held the district court erred in entering a judgment as a matter of law for the Broussards, reversed their judgment and remanded the case for a new trial. The Court further found that the district court erred by even submitting the question of punitive damages to the jury, thus vacating the punitive damage award.

This ruling confirms our belief the jury should have been given an opportunity to evaluate the question of what damage was caused by wind and what damage was caused by water.   The ruling also confirmed our belief that the claim was handled reasonably and per the contract, and, therefore, there was no basis for punitive damages.

Our appeal in this case was important to ensure court rulings remain consistent with the evidence presented at trial, the law, and an accurate interpretation of the insurance contract.