08/03/2017
Million Dollar Hail Lawsuit Verdict
In a Law360, Houston article dated February 13, 2017, a Million Dollar Hail Lawsuit Verdict was reported to have come out of Hidalgo County against insurance mogul USAA. Specifically the article stated the following:
“A Texas jury has sided with a homeowner in his dispute with insurer USAA Texas Lloyd's Co. over a 2012 hail damage claim, finding that the company acted with malice in handling the $76,500 claim and slapping it with a nearly $1.8 million verdict. John R. Griffith, who owns a home in Hidalgo County, filed his fraud and breach of contract lawsuit in April 2014 against USAA and claim adjuster AllCat Claims Service LP, alleging that the companies underpaid him for the damage to his home and other property following a hailstorm on April 20, 2012. The jury found in favor of Griffith, returning its verdict Feb. 7 that included $800,000 in exemplary damages against USAA, which it found had acted with malice in the case. Thomas Sanders of Dykema Cox Smith, who represents USAA and AllCat, told Law360 on Monday that an appeal will be forthcoming in the case. According to the petition, the hail storm damaged Griffith's roof, pool, pool deck, fence and satellite dish. The roof damage caused subsequent damage to the home's ceilings, walls, insulation and flooring. He filed a claim with USAA, and about a month later, in May 2012, AllCat conducted a “substandard inspection” of Griffith's property, he said. During the inspection, Griffith told the court, AllCat spent one hour on site and didn't get on the roof to investigate the extent of damage there, and the report submitted by the AllCat inspectors didn't include all the damage incurred to the property. The damages that were listed in the report were “grossly undervalued,” the petition alleged. “Plaintiff’s experience is not an isolated case. The acts and omissions USAA committed in this case, or similar acts and omissions, occur with such frequency that they constitute a general business practice of USAA with regard to handling these types of claims,” Griffith told the court in his petition. “USAA's entire process is unfairly designed to reach favorable outcomes for the company at the expense of the policyholders.” Neither USAA nor AllCat explained to Griffith why their settlement offer failed to cover the amount of damages, he alleged, telling the court that the companies “knowingly or recklessly made false representations.” The jury found that USAA failed to comply with the insurance policy and that Griffith was owed $76,500 for property damage. The panel awarded Griffith another $76,500 for damages caused by USAA and AllCat's “unfair or deceptive” acts in handling the claim. Because USAA's conduct was “committed knowingly,” the jury also awarded Griffith $335,000, and it required AllCat to award Griffith $200,000 for its knowingly committed conduct. The jury also awarded Griffith $114,000 in attorneys' fees for the trial work, with an additional $85,000 should the case proceed on appeals through the Texas Supreme Court. The jury also found that USAA had committed fraud, awarding Griffith $109,500 for that, and held that there was “clear and convincing evidence” that its malicious acts harmed Griffith. Counsel for Griffith did not immediately return calls seeking comment Monday.
Griffith is represented by Greg Cox of The Mostyn Law Firm. USAA is represented by Thomas Sanders of Dykema Cox Smith. The case is John R. Griffith v. USAA Texas Lloyd's Company et al., case number c-4459-14-d, in Hidalgo County District Court.”
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