The protracted legal saga surrounding the property claims of Hurricane Katrina victims has finally seen a monumental decision, nearly 20 years after the disaster struck. The Mississippi Supreme Court, in a historic judgment, ruled to uphold a $10.5 million punitive damage verdict against the United Services Automobile Association Insurance Company (USAA). This verdict came as a result of findings that USAA refused to pay multiple legitimate claims for property damage incurred due to Katrina, as reported by WDSU.
At the center of this landmark case are Paul and Sylvia Minor, whose home was reduced to rubble by the Hurricane on August 29, 2005. Insured by USAA, their policy was drafted to include wind damage but notably excluded flooding or storm surges. Subsequent to reporting their losses, the Minors entangled with USAA in a lengthy dispute over coverage claims, struggling for recognition of their claim maintained as a total loss caused by wind, as cited by WAPT. USAA, having initially paid only for the damages it assigned to wind but not those arising from flooding or storm surges, left the Minors fighting for their due for years.
Additionally, the Supreme Court mandated that USAA cover the Minors' attorney fees, an amount surpassing $4.5 million. Lawyer Jim Reeves, representing the Minors, described the judgment as "a win for homeowner policyholders here in the state," in an interaction with Clarion Ledger. The final vote by the court stood at 5 to 3, with one justice not participating and another offering a partial dissent specifically against the attorney fees awarded.
In response to the court's decision, USAA conveyed deep disappointment, doubting the evidence on which the punitive damages and attorneys’ fees were based. Before determining their next legal steps, they will be scrutinizing both the majority and dissenting opinions. "USAA helped thousands of families recover from Hurricane Katrina, with countless employees working tirelessly to handle member claims. We are very disappointed in the Mississippi Supreme Court’s decision as the evidence does not support the excessive punitive damages and attorneys’ fees," USAA stated, as recounted by the same Clarion Ledger report.
