Dallas Fort Worth Insurance Lawyer Blog

Read The Policy

September 27, 2014 | Mark S. Humphreys

Arlington insurance law lawyers will tell you to read your insurance policy when you get it. The Insurance Journal published a story that illustrates why. The title of the article is, “Indiana Supreme Court Affirms Importance Of Reading Policy.” Here is what the article tells us.

Failure to procure insurance claims of agent malpractice typically involve agent conduct where the agent makes a promise of future activity and not representations about existing provisions related to actual coverages or limits in the issued policy.

In the former situation, the insured has an obligation to read the policy in many jurisdictions, including Indiana, and should be able to discover the procurement error especially when it relates to policy limits set forth in the Declarations page.

Insurance Companies And Signing Documents

September 25, 2014 | Mark S. Humphreys

Weatherford insurance lawyers will tell you to be careful about what you sign when dealing with an insurance company. A recent case from the Eastern District of Texas re-intereates this point. The style of the case is, Dana O’Quinn v. General Star Indemnity Company. Here is some of the relevant information from that case.

On January 22, 2204, Dana’s husband Brian filed the Articles of Incorporation for Cahoots Entertainment. Dana completed an insurance application from General Star.

A fire occurred on July 4, 2011. A substantial claim was made. On February 15, 2012, Dana signed a Policyholder’s Property Damage Release that stated she accepted the settlement of all claims, but reserved the right to pursue “a supplemental claim for additional damages, if discovered, and to review and revisit the depreciation calculation.” General Star then issued a final payment. On February 6, 2013, Dana filed a supplemental claim for additional damages. A lawsuit was filed by Dana on July 24, asserting claims for breach of contract and bad faith. Both sides filed Motions For Summary Judgment.

Water Damage To Home

September 23, 2014 | Mark S. Humphreys

Fort Worth attorneys who handle water damage claims want to keep up with cases decided by juries through out the state of Texas. A recent case from the Houston Court of Appeals (14th Dist.) is worth reading. The style of the case is, Khan v. Safeco Surplus Lines. Here is some of the relevant information from the case.

In late August 2002, the Khans returned home from a multiple-week family vacation and discovered “[w]ater . . . everywhere in the house” as if there was “no roof on the home.” On August 26, 2002, Khan reported the matter to Safeco. According to Khan, the water in the Property came from a single air conditioning pan leak in the attic.

Safeco assigned the claim to Crawford for adjustment and investigation. Crawford opened a file and appointed an adjustor to handle it. By September 13, Safeco had opened ten claims on the Property. The adjustor contacted a plumbing company to investigate possible leaks and engineer Gary Whightsil to investigate the loss. Whightsil had extensive investigative experience; he had investigated nearly 250 water- and mold-damaged houses prior to examining the Property. Whightsil inspected the Property on September 19. His investigation revealed numerous sources of water intrusion beyond the air conditioning pan leak.

Title Insurance Concerns

September 21, 2014 | Mark S. Humphreys

Dallas insurance attorneys who look at Title Insurance issues will find a recent article published by the Los Angeles Times interesting. The article is titled “Lawsuit Puts Scrutiny On Title Insurance Kickbacks.” Here is what it tells us.

A new federal court suit alleging kickback violations by one of the country’s top-producing real estate sales teams raises an unsettling question for home buyers: Could your agent or broker be pocketing under the table large chunks of what you pay for title insurance?

Some legal analysts say the litigation should be a wake-up call for realty brokers and their customers nationwide. It focuses fresh attention on the often murky financial relationships that exist between title insurance agencies and realty firms — relationships that have been drawing increasing scrutiny from the federal Consumer Financial Protection Bureau.

Texas And Uninsured Drivers

September 20, 2014 | Mark S. Humphreys

Texas insurance lawyers see lots of uninsured drivers. The Insurance Journal published an article addressing this issue. The title of the article is, “Number Of Uninsured Drivers On Texas Roads Drops.” Here is what the article tells us.

The number of uninsured drivers in Texas has dropped more than 38 percent from a year ago, state statistics show, and officials attribute the decline to a program focused on getting those drivers either insured or off the road and a clean-up of the database of the state’s licensed drivers.

Statistics compiled in June indicate 13 percent of motorists, or about 2.6 million Texans, are driving without minimum insurance coverage, which is a violation of state law. One year ago, the state reported that about 22 percent of all drivers, or 4.2 million people, had no insurance.

Uninsured Motorists Out There

September 18, 2014 | Mark S. Humphreys

Dallas lawyers handling insurance cases can tell you there are a lot of uninsured motorists in the Dallas – Fort Worth area. It is also true across the nation. The Insurance Journal published an article titled, “IRC: Uninsured Motorists A Perplexing Pervasive Concern.” Here is what the article tells us.

A new report shows there hasn’t been much ground gained in the battle to reduce the number of uninsured motorists on the road, and there’s nowhere experts can point their fingers as an explanation of the pervasive problem.

From a percentage point of view, the nation’s uninsured motorist dilemma is easing, but the bad news is that the cost of uninsured motorist claims has risen dramatically in the past decade, according to a report from the Insurance Research Council.

Life Insurance – Authority Of Insurance Company Manager

September 16, 2014 | Mark S. Humphreys

Life insurance attorneys in the Dallas Fort Worth area would want to know about a 1996, San Antonio Court of Appeals case holding an insurance company responsible for the conduct of one of it’s managers. The style of the case is, Mendoza v. American National Insurance Company. Here is the relevant information from the case.

Jerry Mendoza purchased a $25,000.00 life insurance policy from American National on August 1, 1991. The October premium was not paid. The policy provided for a thirty-one day grace period. On November 1, 1991, the last day of the grace period, American National’s district manager, Sitka, verbally agreed to extend the grace period until November 4, 1991. The policy, however, specifically provided that only American National’s president, vice-president or secretary had the authority to extend this time period. Jerry Mendoza died in an automobile accident on November 3, 1991. The premium was never paid. In a prior appeal, the San Antonio Court of Appeals affirmed a summary judgment in favor of American National on Mendoza’s breach of contract, negligence, and bad faith claims. The current appeal concerns the trial court’s granting of summary judgment on Mendoza’s claims for intentional infliction of emotional distress, Insurance Code, and DTPA violations.

This court held that in order to qualify as a consumer under the DTPA, a person must seek to acquire goods or services by purchase or lease and those goods or services must form the basis of the complaint. Lack of privity between plaintiff and defendant does not preclude a plaintiff from establishing consumer status. Section 541.060 provides standing to “any person” who has been injured by another’s engaging in an unfair or deceptive act or practice in the business of insurance as declared in the Insurance Code or the DTPA.

DTPA And Insurance

September 14, 2014 | Mark S. Humphreys

Experienced Grand Prairie insurance lawyers can tell you how the Texas Insurance Code and the Texas Deceptive Trade Practices Act (DTPA) interact. A 1996, San Antonio Court of Appeals opinion also shows this interaction or lack thereof as it related to the case. The case is styled, Saunders v. Commonwealth Lloyd’s Insurance Company. Here is some of the relevant information from the opinion.

This is an appeal from the granting of a summary judgment in an insurance bad faith case. Jan Saunders, the insured, sued Commonwealth alleging several instances of improper claims handling including failure to promptly pay a fire loss that completely destroyed Saunders’ home in 1988.

Jan and Dan Saunders’ house was completely burned down by a fire in 1988. The Saunders made a claim on their policy. The insurance company investigated the claim and concluded that Dan Saunders was responsible for setting the fire. Saunders was convicted of the felony of conspiring to burn the house down. The insurance company then denied the claim. This court reversed that conviction. Saunders was acquitted of the charge following a retrial.

Uninsured Motorists

September 13, 2014 | Mark S. Humphreys

Fort Worth insurance lawyers can tell you there are a lot of uninsured motorist cases to be seen. The Insurance Journal published an article recently titled, “IRC: Uninsured Motorists a Perplexing Pervasive Concern.” Here is what the article tells us.

A new report shows there hasn’t been much ground gained in the battle to reduce the number of uninsured motorists on the road, and there’s nowhere experts can point their fingers as an explanation of the pervasive problem.

From a percentage point of view, the nation’s uninsured motorist dilemma is easing, but the bad news is that the cost of uninsured motorist claims has risen dramatically in the past decade, according to a report from the Insurance Research Council.

Assign DTPA Claim?

September 11, 2014 | Mark S. Humphreys

Dallas insurance and Deceptive Trade Practices Act (DTPA) lawyers will tell you a DTPA claim cannot be assigned. If you don’t believe them, you can believe the Texas Supreme Court. The Texas Supreme Court issued an opinion in 2004 that discusses the assignability of a DTPA claim. The style of the case is, PPG Industries, Inc. v. JMB/Houston Centers Partners Ltd. Partnes. Here is the relevant information from that case to help understand why these claims cannot be assigned.
Houston Center Corporation contracted for and constructed the One Houston Center in April 1978. It subsequently sold the building to JMB in 1989 on an “as is” basis. In 1982, some seven years prior to the sale of the building, it had become apparent that the windows manufactured and installed by PPG were defective and about one quarter of the windows had to be replaced. As part of the sale, HVV assigned its warranties to JMB and JMB, in turn, waived its potential DTPA claims against HCC. When more window problems appeared in 1991, JMB sued PPG for breach of warranty and DTPA violations. A jury found for JMB and awarded damages of $4,745,037, and trebled the damages in accordance with the DTPA. The jury also awarded attorney fees in the amount of $1,716,181.00. The Fourteenth District Court of Appeals in Houston affirmed the judgment of the trial court. PPG appealed to the Texas Supreme Court.
It was held by the Texas Supreme Court that DTPA claims are not assignable. While the Texas legislature failed to specify within the language of the DTPA whether claims were assignable, the purpose of the statute argues against assignability. The Texas Supreme Court noted that if it allowed the assignment of DTPA claims, it could well result in a market whereby third-parties purchased a claim from a consumer for less than its full value, thus enabling the third-party to bring the claim and obtain treble damages. In other words, the Court wished to avoid creating a secondary market similar to the one that exists for the purchase of structured settlements. The Court also held that JMB was not restricted in bringing its breach of warranty claim against PPG, thus allowing the court to sustain the jury award for breach of warranty and attorney’s fees.