League City developers sue insurance agency for failing to indemnify subdivision

John Suayan, Galveston Bureau Oct. 5, 2010, 6:29am

GALVESTON - Claiming that the Frickey Insurance Agency failed to provide sufficient coverage for a subdivision they were developing, Sam Boyd Development and League City Investors Ltd. have filed suit against the agency and its owner.

The plaintiffs claim they entered into an agreement with Frickey Insurance and Dan Frickey in 2005 on the belief they would receive a policy which would protect them against civil litigation related to the development of the Whispering Lakes Ranch subdivision in League City, a lawsuit filed Sept. 22 in Galveston County District Court says.

In March 2009, a group of Whispering Lakes Ranch homeowners sued Boyd Development and League City Investors over negligence with regard to the work done on the upscale neighborhood. The developers forwarded a copy of the suit and its subsequent contents to Frickey Insurance with instructions to find an appropriate insurance company for defense and coverage.

Several companies declined to defend and indemnify the plaintiffs, the original petition says.

Boyd Development and League City Investors insist "the denials were primarily based upon a gap in coverage for the plaintiffs as a result of the defendants' negligence in procuring insurance," causing them to pay for the attorneys' fees.

"A demand was made upon the defendants to pay the defense cost of Boyd and League City," the suit says.

"The defendants have not tendered any sum of money for the defense of Boyd and League City in the lawsuit."

Hoover Slovacek L.L.P. is representing the plaintiffs, and Galveston County 10th District Court Judge David Garner is presiding over the case.

Case No. 10-cv-3587

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