Galveston home owner claims repair checks being withheld

John Suayan, Galveston Bureau Dec. 9, 2008, 4:34am

GALVESTON � A Galveston man claims he is not receiving checks from his insurance company to help him pay for repairs to his storm-damaged residence, recent court documents say.

Gary W. Klos's lawsuit accuses Kenneth Joseph Clark of Texas City of withholding funds allegedly guaranteed to the plaintiff a month ago that would cover restoration work to his house in Galveston's Cornerstone Place subdivision.

His neighborhood was swamped by Hurricane Ike's storm surge the morning of Sept. 13.

Klos, who is represented by Galveston attorney George D. Martin, filed the suit in Galveston County District Court on Dec. 2.

The complaint says Clark executed a limited power of attorney to Klos on Oct. 2 to permit the plaintiff to recover on the insurance policies written by Allstate for damages caused by the Category 2 storm's assault on the upper Texas Gulf Coast.

It further explains Klos demanded the money, which was reportedly primed to cover extensive wind and water damage to 615 33rd St., be turned over to him but to no avail.

"Defendant has failed to turn over the insurance checks to the plaintiff, so subject property can be repaired," the suit states.
Klos argues Clark revoked his power of attorney to him more than three weeks after it was assigned on Oct. 27.

The suit asserts the defendant breached his agreement with Klos.

"As owner of the property, the plaintiff is entitled to the payments for damages to the subject property caused by Ike as per his agreement with defendant Kenneth Joseph Clark, who will be unjustly enriched if allowed to keep the payments for said damages," it says.

Consequently, Klos seeks assistance from Galveston County 56th District Court Judge Lonnie Cox to recover the money.

"Plaintiff seeks an order from the court ordering defendants to turn over all checks he receives for the repair of subject property from any source�and that defendant be ordered to endorse said checks to the plaintiff so he can make repairs," the suit says.

Klos filed for a temporary restraining order in an attempt to halt future direct and indirect delivery of the payments to Clark.

Case No. 08CV1196

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