A contract case with an unusual twist in federal court in Alabama is distracting lawyers negotiating a global settlement of Hurricane Katrina insurance claims in neighboring Mississippi.

The Alabama case involves insurance adjusters Cori Rigsby Moran and Kerri Rigsby, sisters who adjusted Katrina claims for State Farm Insurance of Bloomington, Ill., and took 15,000 documents without authorization from their former employer, E.A. Renfroe & Co., a Birmingham, Ala.-based insurance adjusting firm. E.A. Renfroe & Co. Inc. v. Moran, No. 06-1752 (N.D. Ala.).

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