Robbie Hargett Oct. 15, 2015, 12:31pm


British underwriters are suing a Texas used car seller, alleging the company breached a notice condition when it tried to obtain coverage for hail damage that allegedly occurred three years ago.

Certain Underwriters at Lloyd's of London, Syndicate Nos. 2121 and 4020, filed a complaint Oct. 9 in the Sherman Division for the Eastern District of Texas against Tex-Mex Auto Sales of Lewisville, alleging breach of notice condition.

According to the complaint, the underwriters wrote commercial property policy number MU00868CF, issued to Tex-Mex for coverage for Tex-Mex's buildings at 1148 E. Highway 121 in Lewisville for Aug. 18, 2011, to Aug. 18, 2012.

On May 4, 2015, the suit states, Tex-Mex reported its general contractor had discovered hail damage to car roofs that allegedly occurred April 3, 2012.

Underwriters investigated the claim but could not determine when the damage occurred, the lawsuit says.

The complaint alleges Tex-Mex breached its notice condition by failing to report damage until three years later.

Lloyd's of London seeks a judgment declaring there is no coverage under the policy for the reported hail damage because Tex-Mex violated the policy's notice condition, plus attorney fees and court costs. The plaintiffs are represented by attorneys Gerald J. Kimmitt, II and Jeanie Tate Godowin (of counsel) of Legge Farrow Kimmitt McGrath & Brown in Houston.

Sherman Division for the Eastern District of Texas case number 4:15-cv-00699-ALM.

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