Case: Rigsby v. State Farm Fire and
Casualty Co.
United States Fifth
Circuit Court of Appeals (Louisiana law)
No. 14 – 60160,
794 F.3d 457 (5th Cir. 2015)
In a qui tam case stemming from Hurricane Katrina, the
Fifth Circuit upheld a jury verdict against State Farm under the
False Claims Act, 31 USC § 3729, et. seq
("FCA"). Essentially, the court found that the jury's
verdict in this bellwether case was not only warranted, but seemed
to indicate the likelihood of additional meritorious fraud claims
against State Farm arising out of its handling of property damage
claims in the wake of Hurricane Katrina.
After Katrina, Gulf Coast residents whose homes were damaged or
destroyed looked to their insurance companies for compensation.
Many of these homeowners were covered by at least two policies,
often provided by the same insurance company: a flood policy
excluding wind damage, and a wind policy excluding flood damage. A
private insurance
