Rita damage claim filed against Allstate

David Yates Jun. 25, 2008, 9:42am

Steve Mostyn

Even though the Golden Triangle has entered its third hurricane season following Hurricane Rita, attorney Steve Mostyn is still filing new suits against insurance companies.

Ronald and Sheila Darby, represented by the Mostyn Firm, filed suit against Allstate Texas Lloyd's and three of its agents on June 24 in the Jefferson County District Court, claiming the insurance company low-balled them after they submitted her Rita property-damage claim.

The Mostyn Law Firm was been responsible for filing hundreds of Rita lawsuits in the Jefferson and Orange County courts in the past three years.

According to the Darbys' original petition, they submitted a claim for windstorm damages and were wrongfully denied at least a portion of her claim.

The suit says the Darbys asked the insurance company to cover the cost of repairs to their property but Allstate "misrepresented" the policy to them and denied at least a portion of their claim, "even though the damage was caused by a covered occurrence."

"Defendant failed to explain to plaintiffs the reasons for their offer of an inadequate settlement," the suit said, adding that Allstate and its adjusters refused to conduct a reasonable investigation and breached its contractual violation.

The suit faults Allstate for breaching its contract and duty of good faith and fair dealing, and also alleges the insurance company committed several violations of the Texas Insurance Code and Deceptive Trade Practices Act.

Furthermore, the suit says the adjusters are also guilty of several Insurance Code violations and accuses all defendants of committing fraud.

The plaintiffs are suing for the unpaid claim, actual and compensatory damages, economic hardship, plus exemplary damages and damages for mental anguish.

The case has been assigned to the 58th Judicial District, Bob Wortham presiding.

Case No. A181-957

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