Articles Posted in Hail Claims

Many insurance claims are hard to justify a lawsuit unless the insured can make a claim for attorney fees.  Most insurance claims do allow for recovery of attorney fees.  The caveat is that the claim for attorney fees has to be presented properly.  This includes notice prior to a lawsuit being filed.

Here is another recent (January 2023) case discussing attorney fees.  The opinion is from the Northern District of Texas, Dallas Division.  It is styled, Ghulam Sarwar d/b/a AR2S MGMT Inc. and AR2S MGMT Inc. v. General Star Indemnity Company.

This is a lawsuit arising out of a hail damage claim.  General Star (Defendant) filed a motion to exclude Plaintiffs claim for attorney fees based on the assertion that the required pre-suit notice made via email was insufficient and untimely.  Plaintiff counters that notice was sufficient, if not timely, was not timely due to concerns that the statute of limitations was running.

Attorney fees.  Attorney fees.  Attorney fees.  It’s a big deal.  Questions about attorney fees are common in cases involving insurance claims.  The fairly new Texas Insurance Code, Section 542A deals with attorney fees in specific weather related events, such as hail storms.  A 2022 opinion from the Northern District of Texas, Dallas Division discusses this issue.  The opinion is styled, Fiberco, Inc. v. Acadia Insurance Company and Union Standard Lloyds d/b/a Union Standard Insurance Group.

The Defendants in this case filed a motion asking the Court to disallow attorney fees for Fiberco.  The Court denied the motion.

A hailstorm damaged Fiberco’s property in 2020.  Fiberco sued the Defendants.  Counsel for Fiberco sent a demand letter in October 2020 demanding $406,678.05 to settle its claim.  That letter also requested reasonable and necessary attorney’s fees but did not demand a specific amount.

A common question for insurance lawyers is whether or not a claimant can recover attorney fees if they file a lawsuit.  This issue is discussed in a 2022 opinion from the Northern District of Texas, Dallas Division.  The opinion is styled, Antonio Mantzuranis v. State Farm Lloyds.

This is a case by Mantzuranis against State Farm for damages resulting from a storm.  State Farm paid the amount they believed owed on the claim but a trial resulted over the unpaid amount.  A jury awarded $84,020.03, less $39,020.03 for “Money Already Paid,” leaving a net of $45,000.  The Court ordered the parties to submit information regarding attorney fees.  Mantzuranis concedes that his attorney’s fees claim is subject to reduction under Insurance Code, Section 542A.

Texas Insurance Code, Section 542A.003(b)(2) applies to actions against insurers, including breach of contract claims, and requires a potential plaintiff to provide to a potential defendant pre-suit notice of “the specific amount alleged to be owed by the insurer on the claim for damage to or loss of covered property.”

It is important in an insurance lawsuit whether or not the insurance company is subject to being sued for bad faith claims handling or whether or not there is a bona fide dispute about coverage.  A bona fide dispute rids the lawsuit of claims related to bad faith issued.

This was the issue in a 2022 opinion from the Western District of Texas, San Antonio Division.  The opinion is styled, David McArthur, Jean McArthur v. Safeco Insurance Company of Indiana.

This is a first–party insurance dispute arising out of alleged damage to residential property as a result of a wind and hail storm.  Plaintiffs are the owners of an insurance policy (“the Policy”) issued by Defendant Safeco.

Hail damage claims are a frequent source of litigation.  The insured says the damage occurred in the last storm.  The insurance company says the damage is wear and tear or occurred in another storm under a different insurance policy.

The argument about when and how the hail damage occurred generally deals with the legal question known as “concurrent causation.”  This is discussed in a 2022, opinion from the Western District of Texas, Austin Division.  The opinion is styled, Marina Club Condominium Association vs. Philadelphia Indemnity Insurance Company.

This is a summary judgment opinion.  Plaintiff has sued for breach of contract and for insurance code violations.  The Court ruled in favor of Defendant on the insurance code violations but denied the summary judgement for the breach of contract claim.

Here is a 2022, opinion from the Northern District of Texas, Lubbock Division, that deals with recovery of attorney fees under Section 542A of the Texas Insurance Code.  The opinion is styled, Mario Rodriguez v. Safeco Insurance Company of Indiana.

This is a decision based on Safeco’s motion for summary judgment.

At issue is whether payment of an appraisal award, plus payment of estimated interest due under the Prompt Payment Act, entitle an insurer to summary judgment on an insured’s claim
under the Prompt Payment Act.  If so, then the insurer is absolved from paying attorney’s fees
that otherwise would be due under the Prompt Payment Act.  No issue of material fact is present to prevent the entry of summary judgment.  As the Parties have recognized, this is purely a matter of law.  After careful review of the arguments and authority cited by the Parties, the Court finds that Defendant’s position is meritorious.  Although the issue presents policy factors that weigh in favor of each possible outcome, the Court finds that pursuant to 542A.007(a), the legislature’s intent appears clear when enacting Chapter 542A of the Texas Insurance Code to limit attorney’s fees.  It must be presumed that the legislature was aware of the conflict Chapter 542A would have with the Prompt Payment Act and chose to limit attorney’s fees anyway.  It is logical that attorney’s fees are not recoverable when the computation of fees as set forth in Chapter 542A.007(a) lead to zero because the apparent purpose is to curb abusive hailstorm claims.

Hail damage claims have few unique aspects to themselves.  One of those unique aspects is that an insurance company claims the damage to a roof is the result of something other than the recent hail storm a homeowner is claiming, then the homeowner has to properly present the claim to be able to make a recovery.  The most common reason an insurance company denies the claim is that their position that the damage to the roof is the result of wear and tear.

Here is a 2022 opinion from the Northern District of Texas, Dallas Division, that deals with this issue.  The opinion is styled, John Garcia v. State Farm Lloyds.

Garcia had a homeowners policy with State Farm.  After  a hail storm Garcia made a claim for hail damage to his roof.  State Farm sent out an adjuster who asserted the damage was mainly due to wear and tear and that the damage from the hail was minimal to the extent that it did not meet Garcia’s deductible.  Garcia hired an expert that said the damage was in excess of $70,000 and was solely the result of the hail.