JUDGMENT ENTERED ON $3.96 MILLION JURY VERDICT ON GALVESTON COUNTY IKE TRIAL

July 25, 2011

In April, 10 members of a 12-member jury awarded the owner of an apartment complex $3.96 million against Lexington Insurance Company on the owner’s suit for breach of contract and Texas Insurance Code violations.  Cause No. 09-CV-1238, Jaw the Point, LLC v. Lexington Insurance Company, in the 56th District Court of Harris County, Texas.  The judgment, rendered on the verdict, awards the owner $3.9 million in damages that consists of $1.23 million in compensatory damages for violations of the Insurance Code, $2.5 million for “knowing” conduct as found by the jury, and attorneys’ fees and court costs.  Lexington paid the owners $1.1 million on their original windstorm claim. The owners also received their flood insurance claim.  Among other issues, the owner contended that because the buildings sustained roof and structural damage, and because the buildings were damaged at more than 50 percent of their value, they had to be demolished under codes requiring owners to elevate the buildings about 2 feet to meet flood guidelines.