No end in sight for Rita suits

By David Yates | May 22, 2008

Steve Mostyn

Attorney Steve Mostyn is still pushing Hurricane Rita suits through the Jefferson County District Court, proving that even though the hurricane dissipated more than two years ago, the lawsuits following in her wake continue to swell.

Represented by the Mostyn Law Firm, Allison Redeaux filed suit against National Lloyds Insurance Co. and two of its agents on May 21, claiming the insurance company low-balled her after she submitted her Rita property-damage claim.

The Mostyn Law Firm was responsible for filing hundreds of Rita lawsuits in the Jefferson and Orange County courthouses in 2007.

According to Redeaux's petition, she submitted a claim for windstorm damages and was wrongfully denied at least a portion of her claim.

The suit says Redeaux asked the insurance company to cover the cost of repairs to her property but National Lloyds "misrepresented" the policy to her and denied at least a portion of her claim, "even though the damage was caused by a covered occurrence."

"Defendant failed to explain to plaintiff the reasons for their offer of an inadequate settlement," the suit said, adding that the insurance company and its adjusters refused to conduct a reasonable investigation and breached its contractual violation.

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

Furthermore, the suit says the adjusters are also guilty of several Insurance Code violations and accuses all defendants of committing fraud.

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

The case has been assigned to the 60th Judicial District, Judge Gary Sanderson presiding.

Case No. B181-783

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