- Lawsuit to Set Precedent for Potentially Thousands of Similar
                             Cases to Be Filed -

          - Over 1,000 Families Have Joined the Litigation to Date -

    PASCAGOULA, Miss., Oct. 4 /PRNewswire/ -- The following release is being
issued today by The Scruggs Law Firm, P.A.:
    A lawsuit was filed today by active Police Lieutenant Paul Leonard and his
wife Julie, Pascagoula residents whose home was severely damaged by Hurricane
Katrina, in Mississippi Chancery Court against certain insurance companies who
have marketed their policies to Gulf Coast families and reinsurance entities
in Europe and the U.S. (collectively, "Worldwide Insurers and their U.S.
Affiliates").  The litigation, led by attorney Richard F. Scruggs, seeks to
compel the companies to honor their contractual obligations under the
homeowner policies they issued that provide comprehensive coverage for
hurricane damage.  The Worldwide Insurers and their U.S. Affiliates are
seeking to reduce or eliminate coverage by intentionally misclassifying
Hurricane Katrina's destruction as mere flooding.
    The lawsuit includes charges of unjust enrichment, fraud, and indemnity.
The case will set the precedent for potentially thousands of similar lawsuits
that will be filed in a coordinated legal action involving families in
Mississippi, Louisiana, and Alabama.
    In September 2004, Mr. and Mrs. Leonard purchased a comprehensive
homeowners' policy that included a 2% "Hurricane Deductible" from defendant
Nationwide Mutual Insurance Company ("Nationwide").  On September 12, 2005,
with no inspection of the damage to their residence, Nationwide sent them a
letter denying coverage for their losses under their policy.  Paul Leonard, a
police lieutenant with the Pascagoula police force, and Julie Leonard are
life-long residents of the Gulf Coast.  The plaintiffs are seeking, among
other remedies, equitable relief under the law, the rewriting of fraudulently
and deceptively written policies, and coverage for their home and personal
property.
    Mr. Scruggs, whose own house in Pascagoula was destroyed by Hurricanes
Katrina and Rita, said, "The Leonards, like thousands of decent and
hard-working people along the Gulf Coast, purchased a homeowner's policy for
the very purpose of protecting themselves against damage caused by a
hurricane.  That is why they bought the coverage, that is what the insurance
companies represented to them, and that is why they agreed to the special
Hurricane Deductible in their policy.  It is outrageous that these insurance
companies are now trying to get out of their legal responsibilities by
hairsplitting and playing semantics.  They are trying to hide behind
bureaucratic and technocratic interpretations of the intentionally ambiguous
wording in their policies in order to shirk their legal obligations.  This is
one of the most cynical schemes I have ever seen, and sadly it is the people
who can least afford it who will suffer the most.
    "I grew up in the Gulf Coast and consider this area my home.  These are my
classmates and lifetime neighbors who have been devastated by Hurricane
Katrina and Hurricane Rita-and now they are facing further devastation by
these insurance companies' dishonorable behavior.  I am irate that these
companies are refusing to do the right thing, and I am going to do my best to
make them live up to their word and obligations," stated Mr. Scruggs.
    The lawsuit was filed in the Chancery Court of Jackson County,
Mississippi.  Under the express provisions of the Mississippi Constitution,
the Chancery Court, a court of "equity," has unique jurisdiction over these
types of cases.
    The law firms representing the plaintiffs are the Scruggs Law Firm of
Oxford, MS and Denham, Backstrom, O'Barr & Hollingsworth, Ltd. of Ocean
Springs, MS.
    Homeowners who would like to join the litigation should call The Scruggs
Hurricane Katrina Hotline at 1-866-844-5088.

     CONTACT:  The Scruggs Law Firm
               Tel: (662) 281-1212

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