Woman sues Allstate for not keeping her in "good hands" after Rita

David Yates Jul. 25, 2007, 9:38am

Eloise Gorman thought she was in "good hands" by insuring her home through Allstate. However, to date, her home remains "uninhabitable," and Allstate is still adamantly refusing to pay Gorman's Hurricane Rita property damage claim.

Through Provost Umphrey attorney Mark Sparks, Gorman filed a deceptive trade practices suit against Allstate Texas Lloyd's and several of its claim adjusters with the Jefferson County District Court on July 24.

According to the plaintiff's original petition, Gorman's home sustained heavy damage during the storm. Tears in her roof caused water to leak into her home, resulting in "substantial mold contamination." After the storm resided, Gorman submitted a claim under her policy. Allstate sent "numerous" adjusters to the claim, all of whom "continue to engage in delay tactics to avoid paying (Gorman's) claim."

"To date, the home is uninhabitable, un-remediated, and still contaminated," the suit said. "The defendants have refused to provide Gorman with sufficient funds necessary to remedy this situation, despite her continued premium payments to cover this very occurrence."

The suit alleges Allstate misrepresented the policy to Gorman, wrongfully insuring her that she was in "good hands."

The suit says the defendants fraudulently denied portions of Gorman's claim and failed to perform its contractual duty to adequately compensate her, telling her all the while that more inspections were needed before she could receive compensation.

The plaintiff charges Allstate and its adjusters with several violations of the Texas Insurance Code, breach of the duty of good faith and fair dealing, fraud, breach of warranty and violating the Texas Deceptive Trade Practices Act.

Gorman is suing for actual damages, the unpaid balance of her claim, economic damages, treble damages, mental anguish, exemplary and punitive damages, and all court costs.

She is demanding a trial by jury.

Judge Bob Wortham, 58th Judicial District, will preside over the case.

Case No. A179-707

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