Dallas Fort Worth Insurance Lawyer Blog

Suing Wrong Insurance Company – Removal

December 11, 2021 | Mark S. Humphreys

Here is an insurance law situation not seen very often. This is a 2021, opinion from the Western District of Texas, San Antonio Division. It is styled, Amali Obaya v. Allstate Vehicle & Property Insurance Company.

Obaya owned property in San Antonio that was insured by a policy of insurance, when the property was damaged in a wind/hailstorm. A claim was submitted. Obaya asserts that her claim was unreasonably investigated, improperly adjusted, and that the Defendant wrongfully denied the claim. Obaya sued Allstate Vehicle and Property Insurance Company for violations of the Texas Insurance Code, DTPA, breach of contract, and other causes of action. The lawsuit was filed in State Court. No claims were asserted against Allstate Texas Lloyd’s in State Court, nor did Allstate Texas Lloyd’s utilize procedural means to become an actual party to the lawsuit.

Allstate Texas Lloyd’s removed the case to this Federal Court. Plaintiff timely moved to remand, arguing that Allstate Texas Lloyd’s was not an actual party to the state court action and thus lacked the power to remove the case to federal court.

Employer Life Insurance (ERISA)

December 6, 2021 | Mark S. Humphreys

Life insurance through an employer is common. Most people do not realize the differences between regular life insurance that is purchased from a local agent or through a mail solicitation and life insurance that is purchased through their employer. The major difference is that life insurance purchased through their employer is often governed by the Employee Income Security Act of 1974 (ERISA), which is a life insurance plan governed by federal rules versus state rules otherwise.

Here is a case that is worth reading for anybody dealing with ERISA. It is a 2021, opinion from the 5th Circuit Court of Appeals. It is styled, Erica Talasek v. National Oilwell Varco, L.P.

Ben Talasek had purchased life insurance through his employer. He died and a claim was made by Erica for benefits. The actual facts of the case and the procedural history can be read in the opinion.

Insurance Denial Based On Segregating Damages

December 4, 2021 | Mark S. Humphreys

Here, an insurance company refused to pay a claim based on their assertion that the insured customer failed to segregate damages. The Judge agreed with the insurance company. The opinion is from the Northern District of Texas, Dallas Division. It is styled, Svetlin Tchakarov and Popova Rossitza v. Allstate Indemnity Company.

The plaintiffs filed suit to recover damages from Allstate for wind and hair damage to the roof of their property. Allstate moved for summary judgment based on Allstate’s assertion that Plaintiff’s have not provided evidence that would allow a jury to reasonably apportion the harm from the covered and non-covered causes of loss.

The relevant portion of the policy reads:

Claims That The Adjuster Did His Job Wrong

November 29, 2021 | Mark S. Humphreys

Claims against adjusters for violations of the Texas Insurance Code must be very specific. This is illustrated in a 2021, opinion from the Eastern District of Texas. The opinion is styled, Fred Vernon, II v. Palomar Specialty Insurance Company, Wellington Claim Services, Inc., One Call Claims, David Cardenas, and Tanya Spalding.

This case was filed in State Court and Palomar caused the case to be removed to Federal Court asserting that the adjusting companies were improperly joined in an effort to defeat diversity jurisdiction. Vernon filed a motion to remand which is the subject of this opinion.

Pursuant to 28 U.S.C., Section 1332, in removed cases where, as here, there is no suggestion that a federal question is involved, subject matter jurisdiction exists only if there is complete diversity among the parties and the amount in controversy exceeds $75,000.00.

Insurance Claims And Limitations

November 27, 2021 | Mark S. Humphreys

Here is an insurance policy case from the Tyler Court of Appeals issued in October 2021. The opinion is styled Irajabedinia v. Lighthouse Property Insurance Company.

This is a homeowners claim for coverage after Hurricane Harvey. The damage occurred on August 28, 2017. The claim was timely filed and Lighthouse paid in a letter dated October 13, 2017. Plaintiff believed the claim was underpaid but did not do anything else until January 28, 2019, when a letter was sent to Lighthouse pursuing the claim further. On March 14, 2019, Lighthouse responded saying the claim had already been paid and the file was closed. Later, on October 1, 2019, Plaintiff’s attorney sent a more formal demand for coverage.

On December 3, 2019, Plaintiff demanded an umpire be appointed which was done on December 9, 2019. Lighthouse refused to participate, stating that limitations had passed on October 14, 2019. Plaintiff filed suit on December 30, 2019.

Life Insurance Claim Denial – 5th Circuit

November 22, 2021 | Mark S. Humphreys

Life insurance claim denial cases are usually based on the insurance company’s assertion that the insured made misrepresentations in the life insurance application. A 2021, opinion from the United States 5th Circuit needs to be read when handling these types of cases. The opinion is styled, Mirna Guzman v. Allstate Assurance Company.

In this case, Saul Guzman died after suffering a seizure. He was 28 years old. Mirna, Sauls wife and the beneficiary of the policy made a claim for policy proceeds. Allstate rescinded the policy and refused to pay and a lawsuit resulted. Allstate filed a motion for summary judgment and the District Court granted the motion in favor of Allstate. This Court reversed that ruling.

In the life insurance application process, Saul answered a question in the negative about using tobacco or nicotine. Evidence appears to show the answer should have been yes.

Life Insurance – When Does It Take Effect

November 20, 2021 | Mark S. Humphreys

Many times, for a life insurance lawyer, the question is, When did the life insurance coverage take effect.

This question was partially answered in a 1980 opinion from the Eastland Court of Appeals. The opinion is styled, Durham Life Ins. Co. v. Cole.

Kim Cole, a widow, individually and as next friend for her two minor children, sued Durham claiming benefits under a group life insurance policy written by Durham. A trial resulted in a judgment against Durham for $10,000 together with penalty of $1,200 and attorney fees of $5,000. Durham appealed and this Court ruled in favor of Durham.

Requirements To Get Bad Faith In Texas

November 15, 2021 | Mark S. Humphreys

Bad Faith insurance is a frequent topic when a person feels like they have been treated improperly by their insurance company. This issue is discussed in a 2021 opinion from the Eastern District of Texas. The opinion is styled, Aspen Specialty Insurance Company v. Yin Investments USA, LP.

This opinion was issued on competing Motions For Summary Judgment. The only part discussed here deals with the “bad faith” claims at issue.

As stated by the Court, in Texas, insurance companies have a duty to deal fairly and in good faith with an insured in the processing of claims. To succeed on a bad-faith claim, the insured must establish the absence of a reasonable basis for denying or delaying payment of the claim and that the insurer knew, or should have known, that there was no reasonable basis for denying or delaying payment of the claim.

Suing The Insurance Company And A Contractor

November 13, 2021 | Mark S. Humphreys

Here is an interesting twist on how to stay in State Court when suing an insurance company. This is a 2021 opinion from the Northern District of Texas, Dallas Division is styled, Nayeb Family, LP v. Certain Underwriters At Lloyd’s London Subscribing To Policy No. CSSFQP0000024-00 and HD&S Management, LLC.

Nayeb Family, LP (NFLP) was insured by Lloyd’s. A large windstorm caused significant damage to NFLP’s buildings while it was undergoing remodel by HD&S. HD&S had covered exposed parts of the building to try to prevent damage when the storm hit but the building still suffered significant damage.

NFLP made a claim with Lloyd’s and eventually NFLP sued Lloyd’s in State Court against both Defendants alleging various Insurance Code violations against Lloyd’s and negligence against HD&S.

Bad Faith Insurance ?

November 8, 2021 | Mark S. Humphreys

An old Insurance Lawyer once stated about “bad faith” that if you have to have an expert to tell you whether the insurance company acted in bad faith, or not, then there probably not bad faith in whatever the insurance company did.

In 2021, a court in the Western District of Texas, San Antonio Division issued an opinion discussing bad faith. It is styled, Richard Riley v. Safeco Insurance Company of Indiana.

The claim arises out of a claim being asserted by the insured, Riley, against his insurance company, Safeco. The claim is for hail damage to Riley’s metal roof. After a hail storm Riley made a claim for damages and Safeco assigned adjuster Doug Lehr to inspect the claim. Lehr, after his initial inspection retained an engineering firm, Rimkus Consulting, to determine whether the damage to the roof was cosmetic or structural. Rimkus determined the damage was structural.