Almost two years after Thomas and Pamela McIntosh sued State Farm, charging that the company altered a damage report to intentionally underpay their Katrina claim, the lawsuit has been settled confidentially.
The McIntoshes filed a motion last week asking that a federal judge dismiss from the lawsuit claims that State Farm recklessly disregarded their rights as policyholders and should pay punitive damages in the case. Merlin acknowledged Monday that the motion was part of the settlement agreement with State Farm on their remaining breach of contract claim.
The motion said State Farm “had a reasonable basis for taking the position it did regarding coverage.”
The McIntoshes were promptly and properly paid policy limits of $350,000 for flood damage and $36,228 for wind damage before an engineer inspected their property, the Merlin Law Group said in the motion to dismiss punitive damages.
The McIntosh case drew national attention because two State Farm insurance adjusters found separate engineering reports on the property, the first emphasizing wind damage covered by State Farm and the second blaming tidal surge covered by flood insurance. A sticky note on the first report said, “Do not pay bill. Do not Discuss.”
The adjusters left their jobs, went to work for policyholders’ attorney Dickie Scruggs, then told their stories to the national and local media.
The McIntoshes, who were unaware of the first report, had accepted their initial wind payment without question. After news of the altered reports broke, the McIntoshes hired Scruggs to file their lawsuit. But personal criminal charges forced him to bow out of Katrina litigation in December.
Sun Herald
9/15/8
Magnolia Tribune
