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A federal appeals court refused Monday to bar a prominent attorney from representing a Mississippi resident in a lawsuit against State Farm Fire & Casualty Co. over Hurricane Katrina damage.

State Farm failed to show the “extraordinary circumstances” that would call for disqualifying Richard “Dickie” Scruggs from the case, a three-judge panel from the 5th U.S. Circuit Court of Appeal ruled. The case is one of hundreds Scruggs’ firm has filed against the Bloomington, Ill.-based insurer for denying policyholders’ claims after Katrina.

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