Orange county man sues after discovering manufactured home not insured

By David Yates | Sep 26, 2007

When Jesse D. Gregg bought his manufactured home, he was told he would receive homeowners insurance. After Hurricane Rita, Gregg made a claim to his supposed insurance company and was denied.

Gregg is suing the insurance company, Longhorn General Agency Inc. and Signature Manufactured homes for "having no intention of performing (their) end of the bargain."

He filed a deceptive trade practices lawsuit with the Orange County District Court on Sept. 20.

According to the plaintiff's original petition, on April 20, 2005, Gregg entered into a contract with Signature for the purchase of a home.

"Plaintiff and Signature agreed that plaintiff would be charge $35,000 for the base price…and that he would receive homeowners insurance for the price of $1,465," the suit said. "After plaintiff tendered his payment, the remaining cash balance was only $165."

The suit goes on to say Signature, acting as Longhorn's agent, took plaintiff's insurance premium and represented to him that his home would be insured.

After Rita struck Southeast Texas, Gregg submitted his claims for repairs to his home and was denied.

"…Signature failed to notify plaintiff that it had not intention of performing its end of the bargain," the suit said. "Plaintiff reasonably believed Signature's misrepresentations and justifiably relied on Signature's misrepresentations to his detriment."

The suit goes on to say that the defendants wrongfully denied plaintiffs claim for repairs, even though the policy provided coverage for losses, and that the defendants failed to perform their contractual duty to adequately compensate plaintiff under the terms of the policy.

The suit faults the defendants for breaching their contract and duty of good faith and fair dealing, and also alleges the insurance company committed several violations of the Texas Insurance Code.

The plaintiff is suing for the unpaid claim, actual and compensatory damages, economic hardship, plus exemplary damages and damages for mental anguish

Gregg is demanding a trial by jury and is represented by the Law Offices of Stephen Foster.

Case N0. D-070477c

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