McALLEN – Since 2012, the Mostyn Law Firm has brought hundreds of hailstorm lawsuits on behalf of Hidalgo County residents, many of which were removed to federal court.
As previously reported, on Dec. 13 a federal judge in McAllen put Mostyn Law on notice for the “systematic practice” of filing “numerous and unfounded” hail suits.
Eight days after U.S. District Judge Micaela Alvarez hammered the firm and threatened sanctions for continuing to bring baseless claims, Mostyn Law filed two new hailstorm lawsuits on Dec. 21 in Hidalgo County District Court, seeking hundreds of thousands of dollars in damages.
When Judge Alvarez put Mostyn Law on notice, she lectured the firm extensively about adding extra-contractual claims to cases where the only true issue in dispute is whether the insurer adequately estimated and paid policyholders.
Both of the new lawsuits brought by the firm contain extra-contractual claims, and seek exemplary damages and damages for emotional distress from Allstate for alleged breach of good faith and fair dealing.
“Nevertheless, the Mostyn Law Firm finds it worth everyone’s time and energy to lop upon their breach claim numerous extra-contractual theories without any apparent justification,” Judge Alvarez wrote in her notice.
“It comes as no surprise that the Mostyn Law Firm’s extra-contractual claims arise not only unjustifiably, but also uniformly — they are undoubtedly part of a template the Mostyn Law Firm uses in hailstorm petitions.”
The first suit, brought on behalf of Ricardo and Maria Garcia, alleges Allstate and an adjuster failed to fully compensate the plaintiffs for damages caused to their home by a March 26, 2015 hailstorm.
The second lawsuit was brought on behalf of plaintiffs Alain and Sophia Garcia and also names Allstate as a defendant for allegedly failing to fully compensate the couple for damages caused by a March 26, 2016 hailstorm.
Both suits, which are exactly 18 pages long and similar in wording, allege noncompliance with the Texas Insurance Code, unfair settlement practices, fraud, conspiracy to commit fraud, breach of contract, and breach of the duty of good faith and fair dealing.
Both claims were filed through Mostyn Law attorney Rene Sigman.
Cause Nos. C-5636-16-H and C-5638-16-D