Mississippi Attorney General Files Complaint Against State Farm for Breach of Contract
From: Office of Attorney General Jim Hood Filed 6/11/07 GCN
Attorney General Jim Hood today, June 11, filed a complaint against State Farm Fire and Casualty Company for bad faith breach of contract related to the settlement agreement the two parties entered into on January 23, 2007. The complaint was filed in the Circuit Court of Hinds County.
"We filed this lawsuit in an effort to help the more than 30,000 Gulf Coast policyholders who have suffered for nearly two years because of State Farm's inaction," said Attorney General Jim Hood.
"The State Farm reevaluation procedure through the Department of Insurance has only resulted in a little more than 300 new offers. That does not comply with the terms we have with them in black and white. We have a state court order that they signed and then backed out on. If they will breach a clear agreement with a State, then this is further evidence that they have breached their own policy provisions with their insured on the Coast."
Attorney General Hood charges that State Farm has violated several
specific terms of the settlement agreement, including their failure to:
make "an offer of settlement to the policyholder based upon criteria and
guidelines approved by the United States District Court for the Southern
District of Mississippi"