Dallas Fort Worth Insurance Lawyer Blog

Lawyer And Bad Faith Insurance

February 14, 2012 | Mark S. Humphreys

Someone in Weatherford, Fort Worth, Aledo, and other places in Tarrant and Parker County might have a hard time understanding what is “bad faith” in most insurance situations. Here is a case that gives some insight into how it works.

The case is State Farm Lloyd’s v. Johns and was decided by the Dallas Court of Appeals in 1998. Here are some of the background facts.

Johns’ house was built in 1964. Johns moved in to her house in 1972. In the summer of 1990, Johns noticed evidence of extensive foundation problems including door misalignment, significant cracks in the interior walls and a slope to the floor. Repairmen later discovered two plumbing leaks under the house. Johns made a claim for foundation damage alleging that the plumbing leaks caused the soil underneath the house to expand resulting in an upheaval of the foundation, thereby damaging the structure. State Farm concluded that Johns’ foundation problems were not caused by the plumbing leaks, but rather asserted that the damage was caused by ordinary settlement. Based on the exclusion, State Farm denied the claim.

Insurance Attorney Arguing Mental Anguish Claim

February 12, 2012 | Mark S. Humphreys

Someone in Grand Prairie, Arlington, Fort Worth, Dallas, or anywhere else in Texas may wonder how “mental anguish” works as a claim. Here is some insight into that how it works in Texas.

The Texas Supreme Court issued an opinion in 1997, in the case styled “The City of Tyler v. Adeline Likes.” Attorneys for the City of Tyler and attorneys for Likes made arguments for their respective clients. Here is some background.

The primary issue was whether Likes could recover for mental anguish resulting from a flood. There were other issues in the case that will not be addressed.

Insurance Law Attorney Arguing Policy Interpretation

February 11, 2012 | Mark S. Humphreys

Business owners in Weatherford, Mineral Wells, Aledo, Azle, Springtown, Millsap, Brock, Hudson Oaks, Willow Park, and other areas of Parker County need to have a good understanding of the coverage provided in their policies.

The United States District Court, Southern District, Houston Division, issued an opinion on December 20, 2011, that dealt with the interpretation of a commercial insurance policy. The style of the case is, H & H Hospitality LLC v. Discover Specialty Insurance Company. The attorney for the business owner had to argue with the attorney for the insurance company as to the correct interpretation of the policy language related to the “business cessation” clause in the policy.

Here is some background.

Insurance Claims For Emotional Distress

February 9, 2012 | Mark S. Humphreys

Someone in Weatherford, Mineral Wells, Aledo, Hudson Oaks, Springtown, Azle, Brock, Millsap, Cool, Willow Park, or anywhere else in Parker County would have a hard time understanding the coverages in their insurance policy. Most policies cover an insured when they are sued but that is not always the case.

The United States Court of Appeals for the 5th Circuit issued an opinion in a case in 1994, that says the insurance company did not have to defend a case where the insured was sued for “emotional distress.” The style of the case is Travelers Indemnity Company v. Holloway. Here is some background and facts.

This was a declaratory judgment action wherein the insurance carrier, Travelers Indemnity Company of Rhode Island, contended that it had no duty to defend its insured, Wanda Holloway, against a lawsuit for intentional infliction of emotional distress, since this claim was not covered by the policy. Holloway, the mother of a junior high school student competing for a cheerleader position, allegedly plotted to kill Heath, the mother of one of her daughter’s competitors. The mother of the competitor brought suit against Holloway alleging “outrageous conduct causing severe emotional distress” or “intentional infliction of emotional distress.” Holloway sought a defense from Travelers. Travelers argued that Holloway was not entitled to a defense and that there was no coverage, since (1) the conduct did not constitute an “occurrence” under the policy, (2) the conduct was excluded from coverage as intentional conduct, and (3) the conduct was not alleged to have caused “bodily injury” as defined by the policy.

Credit Life Insurance Case

February 7, 2012 | Mark S. Humphreys

When someone in Grand Prairie, Arlington, Fort Worth, Saginaw, Roanoke, Keller, Rhome, Colleyville, and other places in Tarrant County and Texas purchase something on credit or take out a loan, they will often times have the option of purchasing some sort of credit life and disability insurance. Here is a case dealing with what happened in one situation where this was done.

The style of the case is Norman v. League City National Bank and Life of America Insurance Company. This is a 1998, Houston Court of Appeals (1st Dist) case. Here is some background.

Mr. Norman applied for and obtained two loans from the Bank. In connection with the loans, he applied for and obtained credit life insurance from Life of America Insurance Company. Mr. Norman died before making any payments on either loan. The Bank submitted a claim to Life of America, but the claim was denied. The Bank then filed suit against Life of America for payment under the insurance policies. The bank also filed suit in probate court against Mr. Norman’s estate and Mrs. Norman for payment of the loans. Mrs. Norman then filed suit against the Bank and Life of America asserting claims under the Texas Insurance Code, the Texas Deceptive Trade Practices Act, (DTPA) and for breach of warranty. All actions by all parties were consolidated in the probate court.

Force Placed Insurance Claims

February 5, 2012 | Mark S. Humphreys

If you are in Grand Prairie, Arlington, Fort Worth, Roanoke, Keller, Colleyville, Saginaw, or some other place in Tarrant County or Texas and find yourself in some financial trouble, it may be that you find yourself letting your homeowners insurance lapse. If that happens the mortgage lender on your home will buy what is called a force-placed insurance policy and charge you with the premium. There are a bunch of problems when this happens. Two of these problems are real important to you.

First, is that force-placed insurance is very expensive and you are responsible for paying it.

Second, is that a force-place policy covers the mortgage holder not you. In other words, none of your personal property or the contents of the house is covered in the event of a fire loss. Further, if you are sued by someone, the insurance does not cover you. If you get burglarized, you are not covered.

Arson By Spouse

February 4, 2012 | Mark S. Humphreys

No one in Grand Prairie, Weatherford, Fort Worth, Dallas, or anywhere else in the North Texas area would want to be in a situation where their spouse deliberately sets the house on fire. This is something that might happen in a divorce setting or maybe it is just the result of a really bad fight. So what happens as it relates to insurance?

A San Antonio Court of Appeals opinion issued in 1996, sheds some light on this question. Here is some background. The style of the case is Sanders v. Commonwealth Lloyd’s Insurance Company.

Jan and Dan Saunders’ house was completely burned down by a fire. The insurance company investigated the claim and concluded that Dan was responsible for setting the fire. Dan was convicted of a felony of conspiring to burn down the house which was later reversed and he was acquitted. In the meantime, the insurance company, Commonwealth Lloyd’s, denied the claim.

Is Late Payment Of A Claim, Bad Faith Insurance?

February 2, 2012 | Mark S. Humphreys

Most people in Weatherford, Mineral Wells, Aledo, Azle, Willow Park, Hudson Oaks, and other places in Parker County would have a hard time understanding what constitutes “bad faith” in insurance. But most would believe that being late in paying a claim is bad faith. That does not appear to be the case.

The United States 5th Circuit made a ruling in a case in 1997, that addresses this issue. The style of the case is Higginbotham v. State Farm Mutual Automobile Insurance Company. Here are some of the background facts.

Higgnbotham’s Porsche was stolen on June 8, 1993, from an unsecured parking lot next to his residence. The car was later recovered that day but it had been stripped of its top, seats, interior and exterior trim but was not damaged or destroyed with regard to mechanical connections, wiring harnesses or the engine. Higginbotham reported the theft to State Farm on June 9, 1993. State Farm denied his claim five months later on November 19, 1993.

Electronic Signatures And Insurance

January 31, 2012 | Mark S. Humphreys

Residents of Grand Prairie, Fort Worth, Dallas, Arlington, Haltom City, North Richland Hills, and other places in Texas have all become familiar with the use of computers and the purchasing products and services over the internet. A question that often comes up in the context of insurance, particularly Personal Injury Protection (PIP) benefits and Uninsured / Underinsured (UM) benefits is: How is the requirement of a signed rejection of these benefits viewed when the insurance purchase is made over the internet?

Here is some guidance:

The Texas Department of Insurance issued a bulletin that required compliance with the Texas Uniform Electronic Transaction Act. This act is found in the Texas Business & Commerce Code, Chapter 43.

Title Insurance Case

January 29, 2012 | Mark S. Humphreys

Grand Prairie and Fort Worth holders of a title insurance policy might find this recent case of interest.

The Court of Appeals, Tyler, issued an opinion recently in the case styled, Howard L Straily and Tommie J. Straily v. Lawyers Title Insurance Corporation. Here is some background information:

The Strailys own a home built on a pier and beam foundation. Upon noticing that water had pooled beneath their home and believing the source of the pooling to be a water leak, they hired a plumber to investigate the problem. The plumber pumped water from beneath the home and conducted a visual inspection of the area and discovered an uncapped sewer line that was depositing a large quantity of sewage and water onto the property.