Favorable ruling in State Farm v Hood (02/07/08)

State Farm® has received a favorable ruling in State Farm v. Hood. State Farm entered into an agreement with Mississippi Attorney General Jim Hood on January 23, 2007, wherein he agreed to conclude his criminal investigation of “State Farm’s handling of Hurricane Katrina claims.” In late August, State Farm received a grand jury subpoena indicating Hood was reopening this investigation, in violation of the earlier agreement. State Farm filed this action in September seeking to hold him to his agreement.

A federal district court in Natchez, Mississippi ruled this morning in State Farm v. Hood that the contract with Hood is a stand-alone, unambiguous and enforceable agreement between Hood and State Farm and any of its current and former employees, directors, engineers, agents, counsel and adjusters. Other terms relating to resolution of the case are confidential.

State Farm is pleased with this outcome, and, based on this ruling, State Farm has dismissed its case against Hood. The court’s decision allows State Farm associates to stay focused on helping customers in Mississippi.