Denial of coverage for water leak prompts lawsuit

By John Suayan, Galveston Bureau | Oct 1, 2012

GALVESTON - La Marque resident Kirby Dickey complains that his insurance company refused to cover a water leak at his residence although it qualifies for compensation, recent court documents say.

A lawsuit filed Sept. 27 in Galveston County District Court alleges Liberty Lloyds of Texas Insurance Co. made the misrepresentations "although it was aware of its liability to the plaintiff under the policy."

One of Liberty's agents, Russell Mechler, joins his employer as a co-defendant in the case.

The suit shows Dickey filed a claim with Liberty in response to "a sudden and accidental discharge of water" at his home on Sept. 19, 2011.

Liberty then assigned Mechler to adjust the claim.

According to Dickey, the agent made an improper adjustment and the insurer relied on his report, which resulted in the respondents offering little or no payment.

"The defendants estimated the damages were only $5,278, however, [their] representations were false because the plaintiff's damages exceed $30,000," the original petition says.

Dickey insists his claim "remains unpaid and [he] still has not been able to properly repair the property."

A jury trial is requested.

Attorney Jason B. Speights with Speights & Worrich in San Antonio is representing the plaintiff.

Galveston County 10th District Court Judge David Garner is presiding over the case.

Case No. 12-cv-2093

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