Texas Court Awards State Farm $221,000 on Fraud Counterclaims

HOUSTON - A federal judge ordered a State Farm Lloyds policyholder to repay more than $80,000 in alternative living expenses and $141,000 in attorneys fees and costs after the carrier proved that the policyholder committed fraud in connection with a mold damage claim. Howard v. State Farm Lloyds, No. H-04-0352 (S.D. Texas).

Maureen Howard sued State Farm Lloyds for breach of contract, bad faith and violation of the Texas Insurance Code and Deceptive Trade Practices Act, alleging that State Farm Lloyds failed to properly investigate mold and water damage claims and refused to properly fund repairs to her Houston home. …