Texas Appellate Court Upholds Policy's Non-Assignment Clause

DALLAS - A Texas appellate court has affirmed that a property insurance policy's non-assignment clause prevents a new property owner from pursuing a bad faith action over alleged water damage that occurred prior to the transfer. Hoffman & Associates v. St. Paul Guardian Insurance Co., et al., No. 05-04-00902-CV (Texas Ct. App., 5th Dist.).

The 5th District Court of Appeals on Aug. 16 affirmed summary judgment awarded to St. Paul Guardian Insurance Co. after confirming that Dr. Michael Hoffman & Associates never obtained St. Paul's written consent to assign Hoffman's commercial property insurance policy to Dallas Medical Holdings Ltd.

In …