Texas Federal Judge Retains Jurisdiction Over Storm Coverage Action, Says Nondiverse Adjuster Improperly Joined

HOUSTON — A Texas federal judge has refused to remand a property damage coverage action, ruling that the nondiverse adjuster defendant was improperly joined because the policyholder failed to allege his misrepresentation claims with the requisite specificity.

On Aug. 10, Judge Melinda Harmon of the U.S. District Court for the Southern District of Texas dismissed the claims against the adjuster without prejudice, explaining that the policyholder’s “general and conclusory allegations are indistinguishable from the acts of the insurer and fail to state a cause of action” against the adjuster.

Gregory Young’s Sugar Land, Texas, property sustained damage during a May …