STORY FROM: Superstorm Sandy Insurance Litigation

Insurance Adjuster Can Be Held Liable for Unfair Settlement Practices, Texas Federal Judge Rules

DALLAS — Insurance adjusters can be held liable under Texas insurance law for engaging in unfair settlement practices, a Texas federal judge has ruled in remanding a wind and hail storm coverage action.

On Aug. 22, Chief Judge Barbara Lynn of the U.S. District Court for the Northern District of Texas concluded that the plaintiff has asserted viable claims against the nondiverse insurance adjuster and therefore the federal court lacks jurisdiction over the action.

Robert Martinez’s property sustained damage during a wind and hail storm in April 2015. Martinez allegedly submitted a claim to his homeowners’ insurer, State Farm Lloyds, ...

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