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SOUTHEAST TEXAS RECORD

Thursday, March 28, 2024

State Farm defeats Mostyn hail suit at trial, firm had rejected $23K settlement

Mostynhor

DALLAS – State farm Lloyds recently defeated a hail lawsuit at trial, leaving Mostyn Law attorneys empty handed despite an opportunity to settle the litigation early for $23,600.

On June 13, 2012, a hailstorm swept through Dallas County, causing damage to plaintiff Maria Ontiveros’ home – damages that were allegedly undervalued by State Farm.

Two years later, Ontiveros filed suit against State Farm and an adjuster on June 12, 2014, seeking up to $1 million in damages and alleging Texas Insurance Code violations, fraud, conspiracy to commit fraud, breach of contract and breach of the duty of good faith and fair dealing.

A month after the suit was filed, State Farm had attempted to settle the litigation, offering Ontiveros $18,600 for her damages and Mostyn Law $5,000 for attorney’s fees, court records show.

No settlement was reached and the case went to trial. On Jan. 11, a jury found State Farm honored its insurance contract with Ontiveros.

On Nov. 24, 2014, State Farm filed a motion to sever and abate Ontiveros’ extra-contractual claims, arguing that it had made a settlement offer and that Mostyn Law’s discovery requests will be “disproportionately focused on the extra-contractual claims.”

Mostyn Law was recently hammered by a federal judge for tacking on extra-contractual claims to its hail suits.

“Accordingly, the Court should exercise its discretion to sever and abate Plaintiff‘s extra-contractual claims so as to promote judicial economy and conserve judicial resources that need not be expended unless and until Plaintiff prevails on her contractual claim,” the motion states, which was granted.

Ontiveros’ breach of contract claim is less than her policy limits for her home ($101,000), meaning the hundreds of thousands of dollars she sought in damages would have been for extra-contractual claims.

In her petition, Ontiveros alleged the inspection of her home was inadequate and the adjuster failed to include damages to the interior of the home and damages to the home’s A/C unite and siding.

After the adjuster completed his inspection of the house, State Farm issued a payment to Ontiveros in the amount of $6,980.02, court records show.

Ontiveros is represented by Houston attorney Steve Mostyn.

Attorney Neil Rambin of Sedgwick LLP represents the defendants.

Case No. DC-14-06334

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