NEW ORLEANS (AP [HERE]) - A federal appeals court judge in Louisiana is promising a speedy decision in a case pitting New Orleans homeowners against insurance companies that refuse to cover damage resulting from the levee failure in Hurricane Katrina's aftermath.

Judge Carolyn King today said "a prompt decision is very important" given that tens of thousands of residents could be affected by the levee litigation.

In allowing a lawsuit against Northbrook- (Illinois) based Allstate and other insurers, US District Judge Stanwood Duval Junior sided with policyholders who argued language excluding water damage from some of their insurance policies was ambiguous.

A hearing on the insurance companies' appeal was held at the Fifth US Circuit Court of Appeals in New Orleans.

An industry economist says insurance companies stand to lose an estimated one billion dollars in Louisiana if policyholders successfully challenge companies' policies.