Bad Faith claims have a statute of limitations and that limitations period must be strictly followed. This issue is discussed in a 2024 opinion from the Northern District of Texas, Fort Worth Division. The opinion is styled, Shalport, Inc. d/b/a Chevron #36316 v. Amguard Insurance Company.
Shalport, Inc. (“Plaintiff”) is the business owner of a Chevron gas station and convenience store (the “property”), which includes a car wash on its premises. Plaintiff owns commercial property insurance, which was issued by AmGUARD Insurance Company (“Defendant”). On or around December 1, 2021, the car wash on the property sustained severe damage. The damage to the carwash rendered it inoperative. Plaintiff submitted a claim for coverage to AmGUARD. AmGUARD acknowledged the claim and assigned it to a third-party administrator, Raphael & Associates. On April 20, 2022, Raphael & Associates sent Plaintiff a letter stating that no coverage existed under the policy and as such, no payment would be issued for the claim.
Plaintiff retained G.T.O. Car Wash to inspect the car wash and determine the monetary cost of restoring it to its pre-damaged condition. Plaintiff again asked AmGUARD to cover the cost of repairs pursuant to the policy.
AmGUARD failed to adjust the claim to reflect the amount assessed by G.T.O. Car Wash and again denied coverage of the claim. The carwash remains inoperative. The Plaintiff filed its complaint before this Court on April 21, 2024.
Federal Rule of Civil Procedure 8 requires that a complaint contain “a short and plain statement of the claim showing that the pleader is entitled to relief. If a plaintiff fails to satisfy this standard, the defendant may file a motion to dismiss under Rule 12(b)(6) for “failure to state a claim upon which relief can be granted.”
Pursuant to Texas Insurance Code, Section 541.162, Texas law sets a two-year statute of limitation for insurance claims, breach of good faith and fair dealing claims. The Plaintiff “is not in dispute with Defendant” on the issue of when the claim accrued, April 20, 2022. The two-year statute of limitations thus ran on April 20, 2022, and ended two years later at the end of the day on April 20, 2024. The Plaintiff did not file its claims until April 21, 2024. As a result, Plaintiff claims under the Texas Insurance Code are dismissed.