Risk manager, condo owners in fight over hurricane damage settlement

John Suayan, Galveston Bureau Dec. 2, 2010, 2:53am

GALVESTON - A week after it was sued over repeated requests for compensation despite its alleged termination, International Risk Control has filed a countersuit against Seascape Condominium Owners Association.

IRC claims that the association "is now objectively in possession of 100 per cent of settlement funds (allocated from the Texas Windstorm Insurance Association), and has verbally indicated its refusal to pay the plaintiff the amounts owed," according to court papers filed Nov. 22 in Galveston County District Court.

Seascape Condominiums, a 134-unit property located on the westernmost end of Galveston Island, sustained extensive damage from Hurricane Ike in early September 2008.

The defendant hired IRC a month after the storm to work on recovering full compensation from its carriers and the windstorm association.

The plaintiff explains that it notified TWIA of its representation of the association, requesting the state agency that any or all payments on the claim be made payable to both parties.

TWIA informed IRC last month that it paid the association the policy limits on the Ike claim in the amount of $7,897,328.

The suit argues that the plaintiff did not receive a cent as TWIA ignored the contractual notice as well as failed or refused to place the plaintiff on the payment "all to the plaintiff's detriment."

The Voss Law Firm is representing IRC, and Galveston County 56th District Court Judge Lonnie Cox is presiding over the case.

Case No. 10-cv-4214

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