GULFPORT, Miss.-- State Farm Fire and Casualty Co. avoided a potential multimillion dollar punitive damages award Thursday by settling out of court with a Biloxi homeowner who sued the insurer over Hurricane Katrina destruction.

About an hour before attorneys reached the settlement, a federal jury had sided with policyholder Edward Gemmill and ordered State Farm to pay $66,234 for actual damages to his home. But before the jury could consider punitive damages, both sides decided to settle the case for an undisclosed amount.

Gemmill, who walked out of court with his wife Lisa, said he wasn't tempted to gamble on a multimillion punitive damage award. He was seeking up to $5 million in punitive damages, but said he looked forward to moving on with his life.

"I wasn't looking for charity, I was looking for justice," he said.

The Aug. 29, 2005, storm demolished Gemmill's home, leaving only a slab. The home was valued at $217,813 and the contents $107,080. A flood insurance policy paid him the maximum of $128,100, but State Farm had denied part of Gemmill's claim under his homeowner's policy, later giving him a check for $5,746 for wind damage.

(Copyright 2007 by The Associated Press. All Rights Reserved.)