Orange insurance suit moves to federal court

By David Yates | Jun 20, 2007

Orange County resident Jefferie Cartwright will have his Hurricane Rita lawsuit against Balboa Insurance Co. and adjuster Maria Chadwick removed from the county's court and placed in hands of the U.S. District Court for the Eastern District of Texas, Beaumont Division.

The case was removed on June 13.

Cartwright filed his original petition with the Orange County District Court. The plaintiff claims the defendants refused to pay the full portion of his claim submitted following Hurricane Rita and failed to properly evaluate the damage to his property.

The suit says the defendant failed to perform its contractual duty to adequately compensate plaintiff under the terms of his policy and wrongfully denying his claim for roof, water, foundation and wind damage.

The case was removed from the 163rd Judicial District because the plaintiffs and defendants are from different states, the notice of removal of civil action document said.

Balboa Insurance is a California based company, and Chadwick is from Indiana.

In his suit, the plaintiff claims the defendants failed to make an attempt to settle his claim in a fair manner, which is a violation of the Texas Insurance Code, Unfair Settlement Practices.

The suit also faults Balboa with breaching its contract and breaching the duty of good faith and fair dealing.

Cartwright is demanding a trial by jury and is represented by J. Steve Mostyn of the Mostyn Law Firm.

Cause No. B070239

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