Dismissal Granted in Insurance Coverage Breach of Contract, Bad Faith Lawsuit

Dallas/Houston attorneys Rhonda Thompson and Susan Usery successfully obtained a dismissal with prejudice of a contentious insurance coverage breach of contract and bad faith lawsuit filed against their insurance company client arising out of the Watson Grinding explosion in January 2020.

Background Analysis

The insurance company originally denied coverage of the claim, citing serious causation issues presented during the adjustment. The policyholder nonetheless invoked appraisal, seeking approximately $250,000 in damages. The carrier agreed to participate in appraisal under a reservation of rights. An appraisal decision, dramatically less than the original demand, was reached.

The insurance company paid the appraised amount, stood on its coverage position, and filed a dispositive motion, seeking immediate dismissal of all causes of action and damages based upon the appraisal outcome “roughly corresponding” to the original claims’ decision. The policyholder urged, at a minimum, the insurance company remained liable for statutory interest and attorneys fees pursuant to Texas’ Prompt Payment of Claims Act.

After hearing argument, the Court agreed with Thompson Coe.

Civil Action No. 4:21-cv-01738, Joseph Boyd v. GeoVera Specialty Insurance Company (S.D. Texas – Houston Div., 9/9/2022)