Thursday, September 15, 2011

Suit: Allstate's Paperwork Boot Leads To Force-Placed Insurance On Ike-Hammered Home, Driving Owner Into F'closure While Away Working In Saudi Arabia

In Galveston, Texas, The Southeast Texas Record reports:

  • Alleging Allstate Insurance Co. and agent Steve Wolverton's actions after Hurricane Ike caused him legal troubles, League City resident Bradley J. Gana has filed a lawsuit. Recent court documents filed Aug. 26 in Galveston County District Court claim the defendants neglected to deliver a certificate of destruction to Gana's lenders after the Category 2 storm destroyed his house on Sept. 13, 2008.

  • Gana, who was working in Saudi Arabia at the time, says the apparent failure prompted the lenders to force their captive insurance upon him and cause a negative amortization to occur to his loans.

  • "The plaintiff's home was placed in foreclosure as a result of this omission," the suit states. The original petition says that Gana incurred numerous attorneys' fees to keep his home out of foreclosure and ultimately resorted to obtaining a temporary restraining order.

  • His case was elevated to federal court where a settlement and payment of certain insurance proceeds were reportedly paid to the lenders. Gana finally received the certificate earlier this year along with an admission against the defendants' interest that they had forgotten to send it before.

  • The suit summarily faults the respondents for negligence, gross negligence, breach of contract and vicarious liability and agency. Consequently, Gana seeks unspecified monetary damages and a jury trial.

Source: League City man says insurer cost him numerous legal fees after Hurricane Ike.

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