STORY FROM: Superstorm Sandy Insurance Litigation

Insured Failed to Plead Plausible Claims Against In-State Adjusters, Texas Federal Judge Rules

SHERMAN, Texas — A Texas federal judge has denied a motion to remand a storm damage coverage action for lack of diversity, ruling that the plaintiff has failed to plead plausible claims against the in-state claims adjuster and its employee.

On Aug. 8, Judge Amos Mazzant of the U.S. District Court for the Eastern District of Texas concluded that the nondiverse defendants were improperly joined and therefore diversity jurisdiction exists.

Lillian Elizondo’s Denton County, Texas, residence sustained damage during a hail and wind storm. She filed a claim with her homeowners’ insurer, Metropolitan Lloyds Insurance Company of Texas, on May ...

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