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SOUTHEAST TEXAS RECORD

Friday, April 19, 2024

Small business owner sues after insurance policy is cancelled

Carroll

SHERMAN - A small business owner has filed a breach of contract lawsuit against his ex-wife's former employer after his health insurance coverage was terminated and the employer refused to refund any premiums he paid.

Howard Milton McGouirk Jr. filed suit against Bank of America Corp. on Feb. 17 in Denton County District Court. The defendant removed the case to the Eastern District of Texas, Sherman Division on March 23.

According to the lawsuit, as the spouse of a former employee of Bank of America, McGouirk purchased health insurance from or through the defendant for several years.

Through his company Shamrock Sales Inc., he paid the defendant insurance premiums in the amount of $15,055 for coverage for the months of October 2010 through May 2011.

In June 2011, McGouirk claims Bank of America retroactively cancelled his health insurance coverage effective Oct. 29, 2010, the date McGouirk divorced his spouse.

Each of McGouirk's medical providers, who had received insurance payments during the time period at issue, requested reimbursement for all payments. As a result, he requested for Bank of America to remit all unearned premiums paid during the subject time period, but the defendant has allegedly refused to refund any premium payments.

The Bank of America is accused of breach of contract for failing and refusing to provide coverage through the date of premium payments or to remit unearned premiums.

McGouirk is asking the court for an award of actual damages, interest, court costs and attorney's fees.

The plaintiff is represented by Cedar Hill attorney Mark J. Carroll.

U.S. District Judge Richard A. Schell is assigned to the case.

Case No. 4:12-cv-00166

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