Dallas Fort Worth Insurance Lawyer Blog

Insurance Companies Always Want To Be In Federal Court

April 15, 2010 | Mark S. Humphreys

How about a church in Grand Prairie, Arlington, Weatherford, Fort Worth, or anywhere else in Texas who needs to sue an insurance company? How do they stay out of Federal Court? Answer is the same whether it is a church or not: Find an experienced Insurance Law Attorney.

The United States District Court, Southern District, Houston Division, recently had a case like this. The case was partialy decided on March 11, 2010, by Judge, Ewing Werlein, Jr. The style of the case is, New Bethlehem Missionary, Baptist Church v. Church Mutual Insurance Company and Eugene M. Poldrack.

New Bethlehem Missionary, Baptist Church (Church) sued Church Mutual Insurance Company (Mutual) and Poldrack for various violations of Texas Insurance Code, the Prompt Payment of Claims Act, and the Texas Deceptive Trade Practices Act. Mutual had filed papers requesting to invoke the insurance contract’s appraisal process. Church claimed that Mutual’s right to appraisal had been waived.

Interpreting A Commercial Insurance Policy Issued In Texas

April 14, 2010 | Mark S. Humphreys

What about a school district located in Grand Prairie, Arlington, Fort Worth, Weatherford, or somewhere else in Texas? Does that make a difference when deciding how to interpret an insurance policy? The answer is no, but here is a case involving a commercial policy purchased by a school district contractor.

The United States District Court, Northern District, Dallas Division, recently had to decide whether a commercial policy purchased by contractors of the Quinlan Independent School District (QUID) were liable in a claim made by the QISD against one of its contractors. The style of the case is Employers Mutual Casualty Company et al. v. Northern Insurance Company. This case was decided on March 11, 2010, by Senior District Judge, A. Joe Fish.

Dates are relevant in this case. In April 1998, QISD hired DalMac Construction Company (DalMac) to be the general contractor in charge of constructing Ford High School. DalMac hired C. Watts as its “dirt work” subcontractor on the project. QISD took possession of the school in August 1999. Beginning immediately and continuing over the next several years, QISD experienced problems with the building and eventually brought suit against DalMac. In turn, DalMac brought suit against various subcontractors, including C. Watts. C. Watts tendered the defense of the lawsuit to Employers Mutual Casualty Company (Employers). Employers policies went into effect on November 1, 1999. Employers agreed to defend C. Watts in the lawsuit but did so under a reservation of rights. Employers conceded they may have some liability in the lawsuit but that Northern Insurance Company (Northern), which had a policy in effect from November 1, 1998, to November 1, 1999, also had liability under their policy.

A Texas Unbrella Policy

April 13, 2010 | Mark S. Humphreys

Most businesses in Grand Prairie, Arlington, Fort Worth, Dallas, or Weatherford, are going to have insurance policies to cover losses. In addition to the regular liability policy they will also have an “umbrella” policy. An umbrella policy is an insurance policy that covers amounts above those covered under one or more other primary policies, and which does not pay until the losses exceed a certain sum. It is sometimes also called an excess insurance policy.

The United States Court of Appeals for the Fifth Circuit, ruled on a case on March 25, 2010, that dealt with an umbrella policy. The style of the case is, Delta Seaboard Well Serv’s Inc. v. American Int’l Specialty Lines Ins. Co.

Delta Seaboard Well Serv’s, Inc. (Delta) is an oil and gas well serving company that plugs non-productive wells for operating companies. In 2003, Delta contracted with Fort Apache Energy, Inc. to plug a well. Sometime after plugging the well Fort Apache discovered that the gas pressure at the wellhead had not “bled off”, a fact finding that would have required Delta to cease its plugging operation. Fort Apache sued Delta for negligently plugging the hole when there was still recoverable reserves in the hole.

Filing A Lawsuit Against An Insurance Company

April 12, 2010 | Mark S. Humphreys

When a couple in Grand Prairie, Arlington, Fort Worth, Dallas, or Weatherford, has to sue an insurance company, is there anything that they have to do first? The Texas legislature has enacted laws and the Supreme Court of Texas enforces these laws telling us what to do. The quick answer is; see an experienced Insurance Law Attorney. The longer answer follows.

Texas Insurance Code, Section 541.154(a) and (b), tells us that as a prerequisite to filing a suit seeking damages, the plaintiff must give written notice to the other person at least sixty days before filing suit. The notice must tell the other person the specific complaint, and the amount of actual damages and expenses, including attorney’s fees, incurred in asserting the claim. The best way for this to work is that once a person realizes that there is, or is going to be a problem, to write down everything that is happening. Try to remember back to all that has happened and write it down and gather any documents, such as letters, e-mails, faxes, the policy, etc., and get it organized to present to an attorney. Doing this while it is freshest in your memory is better than putting it off.

Texas Insurance Code, Section 541.154(c), tells us that notice is not required if the lawsuit must be filed sooner than the sixty day notice to avoid limitations, or if the claim is asserted as a counterclaim.

In Texas – Potential Recovery – Mental Anguish – Additional Damages – Attorney’s Fees

April 11, 2010 | Mark S. Humphreys

You live in Grand Prairie, Texas, or Arlington, Fort Worth, Dallas, Weatherford, or anywhere else in Texas and your insurance company does you wrong. What are the remedies against the insurance company?

A prior blog at this site discusses the policy damages that can be recovered under an insurance policy. The policy damages being the actual benefits provided by the policy that the insurance company should have paid or the actual policy benefits themselves. We will discuss three other recoveries here; mental anguish damages, “treble damages” and attorney’s fees.

To be able to recover mental anguish damages when an insurance company violates the Texas Insurance Code, the policyholder must show that the insurance company acted “knowingly.” This is stated in the Texas Supreme Court case, State Farm Life Insurance Company v. Beaston, a 1995 case.

Texas Insurance – Actual Damages – Policy Benefits

April 10, 2010 | Mark S. Humphreys

For the Grand Prairie resident or the resident in Arlington, Weatherford, Fort Worth, or Dallas, the concern is – What do I get paid if the insurance company does me wrong.

There are several types of damages to be recovered, depending on the wrong committed by the insurance company. This article will deal with “actual damages” and the recovery of policy benefits.

It makes sense that the most common actual damages are the policy benefits themselves. As a matter of law, at least in certain cases, the amount of policy benefits wrongfully withheld is an element of damages caused by the insurance companies wrongful conduct in the matter. This was stated in the Texas Supreme Court case, Vail v. Texas Farm Bureau Mutual Insurance Co. This was a 1988 court decision where the Court rejected Texas Farm Bureau’s arguement that damages for an unfair settlement practice had to be something more than the amounts due under the policy. The Supreme Court said that damages for a wrongful refusal to pay are at least equal to the policy benefits, as a matter of law. The Court in its reasoning stated:

Texas Insurance And Hospital Liens

April 9, 2010 | Mark S. Humphreys

What happens if you get treated at a hospital in Grand Prairie, Arlington, Fort Worth, Dallas, Weatherford, or anywhere else in Texas and the treatment was the result of an accident that someone else caused? Guess what the lawyers answer is! It depends!

The Texas Property Code, Section 55.002, states in part that “A hospital has a lien on a cause of action or claim of an individual who receives hospital services for injuries caused by an accident that is attributed to the negligence of another person.” Okay! What does this mean? This is answered by Section 55.003(a), where its states in part, the lien attaches to:

(2) a judgment of a court in this state … brought by the injured individual … to recover damages arising from an injury for which the injured individual is admitted to the hospital or receives emergency medical services; and

What Can Be Recovered When You Are Wronged By A Texas Insurance Company

April 8, 2010 | Mark S. Humphreys

If you get treated wrongly by your insurance company and you live in Grand Prairie, Arlington, Mansfield, Weatherford, Fort Worth, or Dallas, the first thing you should do is find an Insurance Law Attorney. He will tell you some of the following:

A plaintiff who prevails against an insurance company may obtain:

a) actual damages b) additional damages if the insurance company acted knowingly c) court costs d) attorney’s fees e) other monies depending on the wrongful act This article will deal just with one potential recovery, that being, the actual damages.

Business Owners Insurance In Texas

April 7, 2010 | Mark S. Humphreys

What if you are a business owner in Arlington, Grand Prairie, Weatherford, Fort Worth, Dallas, or somewhere else in Texas, and your business is shut down for a while? How does your commercial policy help you with lost income?

This was the question in the case, Catlin Syndicate Limited v. Imperial Palace of Mississippi, Inc; Imperial Palace of Mississippi, LLC. This case was decided by the United States District Court for the Southern District of Mississippi. The date of its decision is March 15, 2010.

Catlin Syndicate Limited (Catlin) is an insurer. They insured the casino operator Imperial Palace of Mississippi (Imperial). As the result of damage caused by hurricane Katrina, Imperial suffered a business interruption. Imperial was shut down for several months. When Imperial reopened it made much greater revenue than before the hurricane because many of the nearby casinos remained closed, and people had fewer gambling choices. Catlin agreed to pay Imperial’s claim but there was a dispute as to how the business interruption loss should be calculated.

In Texas – Who Do You Sue?

April 6, 2010 | Mark S. Humphreys

You live in Grand Prairie, Fort Worth, Arlington, Dallas, Weatherford, or anywhere else in Texas and you get treated wrong with your insurance policy – Who do you sue? The answer is not very hard.

First of all …. seek the advice of an experienced Insurance Law Attorney. Then …

The Texas Insurance Code, Section 541.151, provides that a person who has sustained damages caused by another’s engaging in unfair or deceptive insurance practices may sue the person engaging in those acts or practices. Texas Insurance Code Statute, 541.002(2) defines “person” to mean “an individual, corporation, association, partnership, reciprocal or interinsurance exchange, Lloyd’s plan, fraternal benefit society, or any other legal entity engaged in the business of insurance, including an agent, broker, adjuster or life insurance counselor.”