National Verdicts

Plaintiff(s):

John Griffith (Male)

Plaintiff Attorney(s):

Gregory F. Cox;
Mostyn Law Firm;
Houston,
TX,
for
John Griffith

Plaintiff Expert(s):

Phil Spotts; Claims Handling; Houston,
TX called by:
Gregory F. Cox, Michael A. Downey ■ Billy Liles; Construction Cost Estimates/Analysis; McAllen,
TX called by:
Gregory F. Cox, Michael A. Downey

Defendant(s):

Joey Ramon, 

Steven Ellis, 

Gloria Ralston, 

USAA Texas Lloyd’s Co., 

Allcat Claims Service LP

Defense Attorney(s):

Thomas E. Sanders;
Dykema Gossett PLLC;
San Antonio,
TX,
for
Joey Ramon, Steven Ellis, Gloria Ralston, USAA Texas Lloyd’s Co., Allcat Claims Service LP ■ Michael A. Downey;
Dykema Gossett PLLC;
Houston,
TX,
for
Joey Ramon, Steven Ellis, Gloria Ralston, USAA Texas Lloyd’s Co., Allcat Claims Service LP

Defendant Expert(s):

Alan Berryhill;
Construction Cost Estimates/Analysis;
Austin,
TX called by:
Thomas E. Sanders ■ Steve Patterson;
Real Estate;
Fort Worth,
TX called by:
Thomas E. Sanders ■ Charles Levy;
Bad Faith;
Waco,
TX called by:
Thomas E. Sanders

Insurer(s):

self-insured for USAA Texas Lloyd’s Co.

In 2012, plaintiff John Griffith, an attorney in McAllen, was paid approximately $32,000 from his carrier, USAA Texas Lloyd’s Co., for damage that his home sustained from a hailstorm, on April 19. Griffith claimed that the roof — which is over 10,000 square feet, very steep and made of three-quarter-inch wood shakes — was so severely damaged by the hailstorm that it needed to replaced, resulting in approximately $119,000 in costs (for repairs to the roof and other areas of the house). However, claims-adjuster Steven Ellis, of Allcat Claims Service LP, adjusted the claim and determined one slope of the roof need to be replaced, with spot repairs to 1,730 of the roof’s over 20,000 shakes. An independent engineer also determined that the roof could be repaired and did not need to be replaced. Griffith sued USAA, Allcat and Ellis, alleging breach of contract, fraud, bad faith and other violations of statutory insurance codes. Adjusters Joey Ramon and Gloria Ralston were also named; they and Ellis were dismissed, prior to trial. Griffith‘s counsel argued that USAA and Allcat’s personnel failed to thoroughly review and properly oversee the work of their assigned adjusters, and ultimately approved an improper adjustment and an inadequate, unfair settlement of Griffith‘s claim. As a result of this unreasonable investigation, Griffith alleged that he was considerably underpaid. Griffith‘s counsel also advanced a claim (which USAA alleged was unpled) that it was fraudulent for USAA to issue a policy with standard exclusions for wear, tear, and deterioration and construction defects. Griffith‘s expert in claims handling discussed the Texas Insurance Codes and standards, and opined that the adjusters assigned to Griffith‘s claim were improperly trained and failed to perform a thorough investigation. USAA and Allcat maintained that Griffith‘s claim was handled in accordance with Griffith‘s policy and the requirements of the Texas Insurance Code, and the insurance proceeds for covered damage paid on his claim adhered to industry standards. USAA and Allcat noted that Griffith failed to make any repairs with the $32,000 paid to him, and he failed to notify USAA that he disagreed with USAA’s final decision prior to filing suit. USAA maintained there was no factual or legal support for Griffith‘s fraud arguments or any malice on the part of USAA. USAA and Allcat’s expert in roofing maintained that Griffith‘s roof was not as damaged as he claimed, as evidenced by the fact that Griffith made no repairs and his roof is still performing with no leaks to this day. The expert further maintained that the approximately $32,000 payment was sufficient to repair the structure.

Griffith sought to recover $80,260 in costs to replace his roof and make other repairs. He further sought $647,000 (his homeowner’s policy limit) in punitive damages and attorney fees and court costs. USAA and Allcat’s expert in construction costs testified that, if the roof needed to be replaced as Griffith alleged, it would cost approximately $60,000.

The jury found that USAA failed to comply with its insurance policy with Griffith; that USAA and Allcat violated the Texas Insurance Code; that USAA and Allcat’s conduct was committed knowingly; and they committed fraud. Griffith was determined to receive $1.72 million.

John Griffith: $800,000 Personal Injury: Punitive Exemplary Damages; $109,500 Personal Injury: fraud; $70,000 Personal Injury: dwelling; $199,000 Personal Injury: attorney fees and court costs; $6,500 Personal Injury: other structures; $535,000 Personal Injury: conduct was committed knowingly

Judge:

Rose Guerra Reyna

Trial Length:

6
 days

Trial Deliberations:

2.5
 hours

Jury Vote:

12-0

Jury Composition:

10 male/ 2 female

Post Trial:

USAA and Allcat plan to appeal the eventual judgment.

This report is based on information that was provided by plaintiff’s and defense counsel.