Couple sues Allstate over hurricane claim

By David Yates | Jun 13, 2007

Hermie and Norma Bundick are the latest Golden Triangle couple to sue Allstate Texas Lloyd's and Allstate Insurance Co. for not paying the full proceeds of a claim submitted following Hurricane Rita.

The Plaintiffs filed their original petition with the Jefferson County District Court on June 12. Judge Bob Wortham, 58th Judicial District, will preside over the case.

According to the Bundicks' petition, the Beaumont couple submitted a claim to Allstate for roof, water and wind damage caused by Rita.

"Defendants denied plaintiffs' claim for repairs of the property, even though the Policy provided coverage for losses such as those suffered by plaintiffs," the suit said. "Defendants failed to perform their contractual duty to adequately compensate plaintiffs under the terms of the policy. Specifically, defendants failed and refused to pay the full proceeds of the policy.

The couple alleges Allstate's conduct constitutes a violation of the Texas Insurance Code, Unfair Settlement Practices.

"Defendants failed to make an attempt to settle plaintiffs' claim in a fair manner, although they were aware of their liability to plaintiffs under the policy," the suit said. "Defendants failed to conduct a reasonable investigation. Specifically, defendants performed an outcome-oriented investigation of plaintiffs' claim, which resulted in a biased, unfair and inequitable evaluation of plaintiffs' losses on the property."

The suit also faults Allstate with breaching its contract, fraud, not complying with the Texas Insurance Code, Prompt Payment of Claim, and breach of duty of good faith and fair dealing.

The couple is suing for the unpaid portion of the claim, economic hardship, exemplary and other damages and emotional distress.

The Bundicks are demanding a trial by jury and are represented by attorney Don Bush of the Bush Lewis law firm.

Case No. A179-476

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