Travelers Lloyds Agrees to $700,000 Deal in Insurance Bad Faith Case

HOUSTON - A Texas insurer agreed a week before trial to pay $750,000 to settle a policyholder's insurance contract and bad faith. Rothenberg v. Travelers Lloyds of Texas, No. 2003-17566. (Texas 234th Jud. Dist. Ct., Harris Cty.).

Counsel reported that the case was settled after plaintiff Gayle Rothenberg, M.D., and defendant Travelers Lloyds of Texas Insurance Co. engaged in mediation with Houston attorney Ralph E. Gustafson.

Rothenberg sued Travelers in 2003, complaining that Travelers had delayed payment of her mold claim until the condition of her house deteriorated to such an extent it needed to be torn down and rebuilt. …