Crane company sues insurer over underpaid claim

John Suayan, Galveston Bureau Dec. 1, 2010, 7:45am

GALVESTON - H & S Crane Sales Inc. has filed suit against Allianz Global Corporate & Specialty over a reportedly underpaid claim on a damaged crane.

According to the complaint filed Nov. 22 in Galveston County District Court, defendant Allianz failed to properly adjust the claim on the plaintiff's crane and paid a lesser amount with obvious knowledge and evidence of a total loss, a lawsuit filed Nov. 22 in Galveston County District Court states.

The crane in question suffered damage as a result of improper operation in March while it was leased to Federal Offshore Inc.

H & S subsequently filed a claim with Allianz, the crane's policy carrier.

The plaintiff points out that contractual obligations in terms of proper compensation were not met.

"The defendant failed and refused to pay the full proceeds of the policy although due demand was made for proceeds to be paid in an amount sufficient to cover the damaged property and all conditions precedent to recovery upon the policy had been carried out," the original petition states.

Court papers further explain that Allianz allegedly misrepresented to H & S how the damage to the property was not in excess of the policy limits even though said damage was caused by a covered occurrence.

Consequently, the plaintiff seeks unspecified monetary damages and a jury trial.

Attorney Charles R. Kaufman of Galveston is representing H & S.

The case has been assigned to Galveston County 56th District Court Judge Lonnie Cox.

Case No. 10-cv-4208

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