Filing a lawsuit is not as simple as saying the words. One common reason for suing an insurance company is based on allegations of fraud. A 2021, opinion from the Southern District of Texas, Galveston Division, shows that pleading fraud an insurance company has to meet certain criteria or the case will be dismissed. The style of the case is, Smiley Team II, Inc. v. General Star Insurance Company.
Smiley carried commercial property insurance with General Star. A vehicle crashed into Smiley’s covered property and a claim was made. Smiley complains that General Star failed to properly adjust the claim, issuing a payment that substantially undervalued the damages.
Smiley’s First Amended Complaint asserted causes of action for breach of contract and various violations of the Texas Insurance Code and the Texas DTPA.