STORY FROM: Superstorm Sandy Insurance Litigation

Texas Federal Judge Retains Jurisdiction Over Hail/Wind Storm Coverage Action

EL PASO, Texas — A hail/wind storm coverage dispute belongs in federal court because the amount in controversy most likely exceeds $75,000, a Texas federal judge has ruled, denying plaintiffs’ motion to remand.

On Nov. 22, Judge David C. Guaderrama of the U.S. District Court for the Western District of Texas held that the state court petition, in which plaintiffs state they seek “only monetary relief aggregating less than $75,000,” was drafted for the purpose of evading federal court jurisdiction and constitutes bad faith.

Melina and Lydia Arias filed a claim with their homeowners’ insurer, Allstate Texas Lloyds, for damage ...

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