Insurer Wins Jury Verdict in Hurricane Katrina Case

January 25, 2010

Phelps Dunbar LLP's Rick Bass, Jim Wyly and Justin Matheny successfully defended Prime Insurance Syndicate in a Hurricane Katrina lawsuit in the United States District Court for the Southern District of Mississippi. This is believed to be the first jury verdict in Mississippi exonerating an insurer in a Hurricane Katrina claim.

After six days of trial, the jury returned a unanimous verdict on January 19, 2010. The Plaintiffs' complaint, filed in October 2007, alleged bad faith refusal to pay the insurance claim, willful and negligent breach of contract, breach of the duty of good faith and fair dealing and other claims, for which the Plaintiffs claimed over $7 million in compensatory and punitive damages. The jury found for the firm's client, Prime Syndicate, and returned a zero verdict, finding that Prime Syndicate did not breach its contract with the Plaintiffs.

"This was a challenging case, presenting many unique issues. There were concerns about juror attitude toward insurance companies in a post-Katrina environment. Corporate defendants should be reassured by this jury's unbiased decision," said trial counsel, Mr. Wyly and Mr. Bass.

Mr. Bass is a senior partner in the firm's regional litigation practice in the Jackson, Mississippi office. Mr. Wyly is the managing partner of the firm's Gulfport, Mississippi office and a member of the firm's tort litigation regional practice group. Mr. Matheny is a senior associate in the firm's regional litigation practice in the firm's Jackson office.

Phelps Dunbar is a regional law firm of approximately 250 attorneys, with offices in New Orleans and Baton Rouge, Louisiana; Jackson, Tupelo, and Gulfport, Mississippi; Houston, Texas; Tampa, Florida; and London, England.

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