Judge gives Katrina flood victims hope (AP)

NEW ORLEANS - A federal judge has ruled that thousands of homeowners flooded after Hurricane Katrina can move forward with their attempts to seek compensation from insurers, a ruling that runs counter to a previous federal court decision. U.S. District Judge Stanwood Duval Jr. on Monday sided with New Orleans homeowners who argued that the language excluding water damage from some insurance policies is ambiguous. Under Louisiana law and precedent, Duval ruled, insurance companies must prove that ...