The Louisiana Supreme Court has declined to reconsider its ruling in a class-action lawsuit against Louisiana Citizens Property Insurance Corp. that could cost the state-run insurer of last resort about $103.8 million.

The state's highest court declined the application for rehearing on Friday by the same 4-3 vote that reinstated a March 2009 lower court judgment against Louisiana Citizens. Associate Justices John Weimer, Jeffrey Victory and Greg Guidry said they would have reheard the case.

In the original March 2009 judgment, Judge Henry Sullivan of the 24th Judicial District Court in Jefferson Parish awarded 18,573 homeowners in the class-action case, Geraldine R. Oubre et al. v. Louisiana Citizens Fair Plan, $5,000 each because Citizens' own records proved that the state-sponsored insurer of last resort waited more than 30 days to begin adjusting hurricane claims, violating state law.

A state appeals court had thrown out the ruling before the Supreme Court reinstated it in December. While the original $92.8 million judgment was on appeal, another $11 million in interest was added to the verdict, bringing the total to about $103.8 million.

The move is potentially great news for Citizens policyholders who were jilted by the insurer during hurricanes Katrina and Rita. When the 2005 storms hit, Citizens was beset with operational problems, and started adjusting hurricane claims later than other companies, putting policyholders behind in getting money to begin home repairs.

In December, Insurance Commissioner Jim Donelon called state supreme court's decision "unconscionable." Citizens has about $200 million in the bank and can afford to pay the judgment, but Donelon said the verdict places the insurer at risk if a hurricane hits this season.

Citizens chief executive Richard Robertson said that his company plans to ask the U.S. Supreme Court to review the case. "The last thing that can be done from a legal perspective is to ask the U.S. Supreme court to take up the case, and we have 90 days from last Friday to do that," he said. "If they don't take it up, all the appeals are exhausted, we'd have to pay the judgment."

Before any money can be distributed to policyholders, the judgment in the case must be finalized. Plaintiff attorneys in the case weren't immediately available for comment Monday, so it wasn't clear whether that could happen while a U.S. Supreme Court application was pending.

Meanwhile, the cost of the Oubre case could grow. Another 7,000 to 10,000 homeowners in the Oubre case also say that Citizens initiated the adjustment of their hurricane claims too slowly. Their motion had been on hold while the case was on appeal, but if Judge Sullivan finds in their favor, Citizens could have to pay another $35 million to $50 million.

Rebecca Mowbray, The Times-Picayune