STORY FROM: Superstorm Sandy Insurance Litigation

Insurer’s Prompt Payment of Claims Bars Breach of Contract Claim, Texas Judge Rules

MCALLEN, Texas — A Texas federal judge has awarded summary judgment to a homeowners’ insurer on a breach of contract claim, ruling that because the parties had gone through an appraisal process that resulted in an award that the insurer promptly paid, the claim is barred.

On Feb. 22, Judge Micaela Alvarez of the U.S. District Court for the Southern District of Texas found the insureds failed to identify any contractual provision that was breached.

Mark and Kelly Dizdar’s property sustained damage during a March 29, 2012, storm in the Rio Grande Valley. Shortly afterward, they submitted a claim to ...

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