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SOUTHEAST TEXAS RECORD

Monday, March 18, 2024

State Farm trial winning streak ends at 16, defeats two more Mostyn hail claims before losing

Insurance 07

DALLAS – For more than a year now, State Farm Lloyds has been battling the surge of mass litigation being brought against all insurers within the state, capturing 16 trial wins before recently losing.

In mid October, three cases were tried in a week’s span against State Farm, with the insurer defeating two hail claims, which were brought by the Mostyn Law Firm, then losing the third – a home foundation case involving water damage.

The two hails claims both sought up to $1 million in damages, respectively, and were brought on behalf of plaintiffs Cesar and Nikki Trevino and Martin and Josefina Garcia, court records show.

Both the Garcias and the Trevinos claimed a hailstorm damaged their homes on May 28, 2013, causing roof and water damage.

Collectively, the plaintiffs charged State Farm and the company’s adjusters with performing an unreasonable investigation and underestimating their damages, accusing the insurer of fraud, breach of contract and unfair settlement practices.

At trial, jurors found State Farm honored its insurance policies with the plaintiffs, awarding no damages.

The Trevino case was tried in Randall County, while the Garcia claim was tried in Potter County.

For the past decade, Mostyn Law, founded by Houston attorney Steve Mostyn, has filed thousands upon thousands of lawsuits against insurance companies after storm strikes within the state, reaping hundreds of millions in attorney’s fees.

Prior to the trials, on Oct. 11, two district judges in Potter and Randall Counties, Judge John Board of the 181st District and Judge Dan Schaap of the 47th District, sent a letter to Mostyn asking him to advise them which cases actually belong in district court.

“It has come to our attention that most, if not all, of the storm damage cases your firm has filed in Potter and Randall Counties have been assigned to the District Courts as opposed to the County Courts at Law,” the letter states. “However, it is clear that many, if not the majority, of these cases fit within the jurisdiction of the County Courts at Law.

“As the Local Administrative Judges for Potter and Randall Counties, be advised that we intend to reconsider the assignment of these cases to lessen the burden of the District Courts, and more importantly, the related expense to our Counties and the burden on the citizens of our Counties who are called upon to serve on our juries.”

The third claim, brought by Charlotte Russell Douglas on behalf of Lottie Russell, was a home foundation case tried in Dallas County.

Jurors determined there were covered and non-covered causes of loss, finding plumbing leaks caused 70 percent of foundation movement and damage while excluded causes caused 30 percent, awarding $25,000 in damages and $30,000 in attorneys’ fees.

Houston attorney Eric Dick represents the plaintiff in the case.

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