Local credit union sues insurer over collision payment

A credit union claims its insurance company failed to comply with federal law by refusing to pay it for damages sustained during a collision.

Mobiloil Federal Credit Union filed a lawsuit Jan. 3 in Jefferson County District Court against Driver's Insurance Co.

In its complaint, Mobiloil claims it had an insurance policy with Driver's on a 2007 Chevrolet Suburban and submitted a claim under the policy following a collision on Aug. 26.

However, Driver's has denied a portion of the claim and has failed to pay the full proceeds of the policy, according to the complaint. The insurance company did not offer a reason for its refusal to make a payment.

In its complaint, Mobiloil alleges breach of contract, noncompliance with the Texas Insurance Code and breach of the duty of good faith and fair dealing.

Mobiloil is seeking actual, economic and exemplary damages, plus pre- and post-judgment interest, attorney's fees and other relief the court deems just.

Robert B. Dunham and Jessica L. Hallmark of Dunham Hallmark in Beaumont will be representing it.

Judge Gary Sanderson, 60th District Court, has been assigned to the case.

Case No. B191-593