Orange insurance suit moves to federal court

Hurricane victims and Orange County residents Murphy and Debra Hunt will have their $75,000 lawsuit against State Farm Lloyds plucked from the county's court and placed in hands of the U.S. District Court for the Eastern District of Texas, Beaumont Division.

The Hunts' filed their original petition with the Orange County District Court on Feb. 22, 2007. They claim State Farm refused to pay the full portion of the property damage claim they submitted following Hurricane Rita.

"Defendant failed to perform its contractual duty to adequately compensate plaintiffs under the terms of their policy�wrongfully denying their claim for roof, water and wind damage," the suit said.

The case was removed from the 260th Judicial District because the plaintiffs and defendants are from different states, and the "matter in controversy exceeds the sum of $75,000," the notice of removal of civil action document said.

State Farm Lloyds is an Illinois based company.

In their suit, the Hunt couple claims the defendant failed to make an attempt to settle their claim in a fair manner, which is a violation of the Texas Insurance Code, Unfair Settlement Practices.

The suit also faults State Farm for breaching its contract and breaching the duty of good faith and fair dealing.

The Hunts are demanding a trial by jury and are represented by Brent Coon & Associates attorney Ryan Scott.

Cause No. D070093-c