Texas Court Allows Contract Claim but Bars Bad Faith, Deceptive Practices

BEAUMONT, Texas - A home insurer's response to a demand for coverage of mold remediation costs was not unreasonable, foreclosing both common-law bad faith and related statutory claims, a federal judge ruled April 22. Kondos v. Allstate Texas Lloyds, et al., No. 1:03-CV-1440 (E.D. Texas).

U.S. District Judge Marcia A. Crone denied Allstate Texas Lloyds' motion for summary judgment on contract claims, however, saying it is unclear whether Allstate 'made full and timely payments' to the homeowners within the terms of the policy.

George and Ruby Ann Kondos sought coverage from Allstate in August 2001 for water damage and related …