Insurer sues Miss. coast school district in wind versus water dispute

Published 4:53 pm Friday, February 8, 2008

The Bay St. Louis-Waveland School District is being sued by an insurance company over wind versus water damage related to Hurricane Katrina.

Cathedral Capital Limited has asked a federal judge to determine what is its liability under its policy with school district.

The school district contends there was more damage caused by wind than Cathedral wants to pay for through its policy.

School Superintendent Kim Stasny said the school district’s policy with Cathedral is a secondary policy, meaning it pays only after the system’s primary insurance limits are reached.

Stasny said the school district’s primary policy covers claims up to $5 million. He said the Cathedral policy covers about $25 million.

Scott Ellzey, the attorney representing the insurance company, says both parties are continuing to work toward a resolution.