Insurer seeks $125K for covering property damage at Galveston resort

By John Suayan, Galveston Bureau | Jul 20, 2013

GALVESTON - An insurer seeks restitution after it covered damages to a building at a Galveston resort on behalf of one of its clients, recent court documents say.

Ironshore Specialty Insurance Co., as subrogee of Cleveland Construction Inc., asserts that JC Heating and Air Conditioning LLC and Hallmark Specialty Insurance Co. owe it "at least" $125,157.83, an amount the former says it paid to repair property damage to Building No. 22 at the Silverleaf Seaside Resort.

The lawsuit was filed July 9 in Galveston County District Court.

It explains that Cleveland Construction and JC Heating entered into a contract in September 2009 to provide HVAC systems, install all supplied HVAC equipment and seal all penetrations created by the project.

The agreement required JC Heating to purchase and maintain commercial general liability insurance with policy limits of no less than $3,000 for each occurrence to which it reportedly named Cleveland Construction as an additional policyholder.

According to the original petition, Cleveland Construction learned toward the end of said project from Silverleaf's owner that there were leaks in the structure.

"Through thorough and competent investigations, it was determined that water damage, moisture damage and physical property damage to the walls, ceilings, insulation, floor coverings and other building materials contained in the units of Building No. 22 resulted from the negligent, careless and improper installation, set up, supervision and servicing of the HVAC system by JC Heating," it says.

Ironshore adds Hallmark failed and refused "to pay for the property damage in question or contribute to the payment of the property damage claim in question," forcing the complainant to pay for "at least a portion" to Silverleaf.

"Ironshore, not acting voluntarily, but out of necessity, paid a debt, liability or obligation for which Hallmark was primarily responsible and should have been paid by Hallmark," the suit says.

A jury trial is requested.

Attorney John P. Abbey of Tucker, Taunton, Snyder & Slyde in Houston is representing the plaintiff, and Galveston County 405th District Court Judge Susan Criss is presiding over the litigation.

Case No. 13-CV-891

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