First Katrina Insurance Lawsuit Begins

By William Murphy

Published on July 11, 2006

Police Lt. Paul Leonard and his wife Julie purchased a homeowner's policy from Nationwide more than a decade prior to Hurricane Katrina's devastation of their home on August 29, 2005. They contend that insurance agent Jay Fletcher assured them that the policy covered all hurricane damage. The Leonards say that Nationwide has paid only $1,600 toward the $130,000 in damage that Katrina caused to their home.

Nationwide maintains that the Leonards' policy did not cover flooding, which the Columbus, Ohio–based insurer claims caused the majority of damage to the couple's home. Spokesman Joe Case said that the Leonards are trying to have the court rewrite their insurance policy to cover damage after the fact.

The Leonards are represented by Attorney Richard "Dickie" Scruggs, who is also representing 3,000 other Katrina plaintiffs in lawsuits against several insurance companies. Among Scruggs's clients is his brother-in-law, U.S. Sen. Trent Lott (R-Miss.), whose Pascagoula home was destroyed in the hurricane. Though Nationwide downplayed the effect the case would have on other cases, Scruggs said that the case would have a huge impact on subsequent cases because it is the first.

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