STORY FROM: Superstorm Sandy Insurance Litigation

Texas Federal Judge Remands Storm Damage Coverage Action Against Allstate, Adjuster

HOUSTON — A Texas federal judge has remanded a property damage coverage case, ruling that the nondiverse insurance adjuster defendant was not improperly joined because the policyholder could possibly recover against the adjuster under the Texas Insurance Code in state court.

On July 13, Senior Judge Nancy Atlas of the U.S. District Court for the Southern District of Texas found the plaintiff has adequately alleged specific wrongful conduct on the part of the adjuster, thereby satisfying Rule 12(b)(6) for purposes of the fraudulent joinder analysis.

Avalon Robinson filed a claim with her homeowners’ insurer, Allstate Texas Lloyds, after her house ...

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