Not to Belabor the Point…..

But pictures are truly worth 1000 words. For instance take these from our archives of the McIntosh residence which is one of the focal points in the False Claims Act lawsuit against State Farm.  There was around 4 feet of water inside the residence when the storm surge peaked in the Biloxi Bay several hours after Hurricane force winds began blowing.

mcintosh-exteriorRemember the neighbors said the house next door blew apart and into the McIntosh residence which in turn breached its structural integrity. I wonder whose roof trusses are in the picture? The McIntosh residence still has its roof and there is no house between them and the water.

mcintosh-exterior-aHere is another shot showing the trusses. Did they happen to float there or did they come from the neighbor’s house as the eye witnesses said.

mcintosh-exterior-bHere is another shot of the exterior from a different angle. I’m not an engineer though I did receive a storm surge Phd from the school of hard knocks. This is obvious wind damage. The first engineer sent by State Farm, the one who didn’t realize assigning obvious wind damage to the proper cause would get them fired, reported the exact same thing. I’ll go a step further and say there was no flood damage to the McIntosh residence within the meaning of the insurance policies State Farm’s lawyer’s prepared. Why did State Farm tender the flood policy paid for by the taxpayers and deny obvious wind damage that would have come from Ed Rust’s pockets?


10 thoughts on “Not to Belabor the Point…..”

  1. So glad you posted those pictures! Your expertise as construction specialized CPA proves helpful once again. Identifying a roof I can do, a roof truss not. Thanks!

    Just want to clarify for our readers the location of the Mac’s house.

    The McIntosh house was four miles from the Coast – Rising water came their way but that was after the wind damage caused a great big hole in the roof and water poured in for hours.

    (they were too far back for all those chicken parts in the surge that came your way, too!)

  2. I used a poor choice of words and I’ll be exact. In the first picture those are open joists used in raised floors (second floor of a house or the living floor of a raised house). The second picture has a heavy duty floor joists with metal brackets on both ends. Surely the first engineer noticed all the stuff that would be above those joists was no where to be seen. Roof decking for instance becomes rectangluar missles in high wind that can travel a good distance.

    Also notice in the extreme right of the second picture just above the heavy joist the exterior fiber board is damaged at the bottom. To the extent the bricks are gone could indicate the point where one of the joists impacted the wall – can you imagine the force of that heavy duty joist impacting a brick wall in a 120 mph wind?

    Even if you give State Farm the benefit of the doubt on the expedited flood payments when they denied the wind claim they also lost the opportunity to make the NFIP whole. And when Lecky King was presented with evidence via State Farm’s own engineer as to the true cause of damage on McIntosh she terminated the firm and made sure when they came back on board they had gotten the message.

    Of course that same scenerio repeated many times across different insurers thus names like Mullins and Weiss are also forever part of the Katrina legal landscape.

    This isn’t rocket science, never was, just common fraud against the federal government. I well remember when the governemnt aid began flowing here how the residents were warned not to cheat because big brother was watching and indeed Dunn Lampton was true to his word locking up many a petty thief for years over a few thousand dollars. Even the current Mayor of Gulfport could not escape the federal microscope.

    Did it ever occur to the policymakers that it would have been a good thing to monitor the insurance companies when Dave Maurstad opened the treasury to them via the NFIP expedited claims procedures. Pathetic doesn’t begin to describe the mindset…

    So the bottom line is Lecky King, a common criminal like so many others that defrauded the government is laughing all the way to the bank while Brent and Laura Warr fight for their freedom over what will turn out to be $3,200 in disaster assitance.

    Just-us really bites IMHO.


  3. Excellent points, Sop. If my computer and the clock cooperate, I’ll have more on both the McIntosh flood damage and the Warr’s disaster with disaster assistance up before the day is out.

  4. I’m confused. Are you saying the 4 feet of water in the house wasn’t flood, or that it didn’t cause any damage?

  5. Actually I’m saying neither Justme. The way scores of years of case law cut these cases is fairly straight forward. Under an All perils policy such as the one the McIntoshs had with SF, the polocyholder only has to establish the loss. It then falls to the insurer to adjust the claim and pay for covered perils.

    And before you say it anti concurrent causation does not apply. Wind damage done before the flooding is covered under a wind included all perils policy and it doesn’t matter that the surge flooded the remnants thereafter.

    You have eye witnesses and photographic evidence which backs the eye witness accounts up to the T. The first engineer called it straight (menaing the Farm was on the hook) and the entire group was fired. Besides being fraud against the NFIP it is manifest bad faith in my non professional but now very learned opinion.

    That is not to say the McIntoshs didn’t have some content losses that could have fallen under the flood catagory but looking at the damage to the house, I don’t think the NFIP owed them a dime for their structural losses and I think State Farm breached thier fiduciary duty as a WYO company when their tab got dumped on the NFIP.

    My own opinion is it gets worse for the Farm from here as I think there is a better than 50% chance DoJ intervenes now that Bush and his political hacks at DoJ are out of the way.

    Just because Tom McIntosh broke and signed that settlement means nothing except he shafted himself financially for some peace. Personally I’d love to see Birnbaum’s lapdogs at Butler Snow put him on the stand but that will never happen.

    What in the world do you think happened to Rossie? He is a fair weather observer for certain and his mean spirited nasty grams to the Rigsby sisters will certainly come back to bite him in the ass.


  6. There was not $250,000 in structural damage caused by flooding. Maybe as much as $100,000 but not more. The roof, window, door, and wall damage was caused by wind-driven debris. Then high winds and rain penetrated those breaches and made the damage much worse. After all that, then the floor got wet.

  7. That home was a goner regardless of the flooding. State Farm in its capacity as homeowner’s insurer should have paid 100% within days of stepping on foot on the property.

  8. I’m with NRB and really feel for everyone. The bottle line in their capacity to homeowners insured by them ie. all insurers should have paid. Thanks to Slabbed the spot light shines on.

  9. As a taxpayer and “Victim of KATRINA”, I sure hope that “someone” goes to the Federal Penitentiary over all of this. (But it probably won’t “happen”. I mean, after all, KSM and the Nigerian “Fruit-of-the Loom” Bomber (attempted) will get jury trials in the USA.

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