Anita Lee Reports from Team Rigsby

There has been lots of news lately from Team Rigsby that Nowdy has blogged extensively on here and here. Anita Lee at the Sun Herald also wrote a story on Team Rigsby for yesterday’s paper that I missed.  It includes a good synopsis of recent events and an interesting quote from Chip Merlin:

Two Ocean Springs insurance adjusters who accused their former employer, E.A. Renfroe adjusting firm, and State Farm of fraud are negotiating an end to their legal battle with Renfroe while preparing to argue their case against State Farm in federal court in Gulfport.

Former Renfroe employees Cori and Kerri Rigsby, assigned to State Farm after Katrina, took insurance records in an attempt to prove the company blamed policyholders’ Katrina damage on tidal surge to avoid paying wind claims. Instead, the Rigsbys allege, State Farm overbilled the National Flood Insurance Program.

The Rigsbys lost their jobs after they admitted taking the records. Renfroe won a breach of contract lawsuit against the sisters in the company’s home state of Alabama. A federal judge there was set to determine how much in damages the Rigsbys should pay Renfroe for taking the records.

The Rigsbys filed their own lawsuit against State Farm, Renfroe and engineering companies that examined Katrina damage for the insurer. The Rigsbys are attempting to recover NFIP funds for the government, plus win a percentage of any damages.

State Farm has denied any wrongdoing, as have vendors named as defendants.

In the latest motion filed, the Rigsbys say they have “reached an agreement in principle to resolve all disputes with Renfroe.” When that agreement is signed, they say, they will ask to dismiss the whistle-blower case against Renfroe.

U.S. District Judge L.T. Senter Jr. will hear arguments May 20 about whether the whistle-blower case should go forward against defendants State Farm, and two engineering companies, Haag and Forensic.

Senter already has found the Rigsbys’ arguments should be narrowed to one case, that of Biloxi policyholders Thomas and Pamela McIntosh. Senter said it is the only specific policyholder claim where the Rigsbys have alleged flood damage was falsified to obtain an NFIP payment. If he finds the payments were justified under the law, he will dismiss the case.

Senter has denied the Rigsbys’ request to delve into more State Farm records before he decides whether the case should go forward.

The McIntoshes own lawsuit against State Farm was settled on confidential terms, with the McIntoshes saying they believe the company acted reasonably in adjusting their claim.

However, McIntosh attorney William F. “Chip” Merlin of Florida said Monday: “People should not read too much into the release between the McIntoshes and State Farm. The Rigsbys’ case and the manner they might present it is going to be very different.”

The color to the Renfroe v Rigsby “judgment” that didn’t make it past the cutting room floor for the news story is a close reading shows despite Billy Acker’s the finding of a contract breech the damages were likely to be minimal to none. Simply put Team Rigsby is throwing the Renfroe a bone.

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