Cases like this can have an affect on us

[Guest guest]

I have come across several situations such as this within the last

10 years. Not knowing all the facts makes it that much more

difficult to comment on what had actually taken place.

I have dealt with several individuals that have filed mold claims,

medical claims and the affects that it has on them/family, I'm not

speaking of this individual case here. Where the facts did not add

up, their story was all over the road, questionable at best. Also,

the effects of these toxins they said they were experiencing, they

could only speak in very general terms. An example of this; One

person I knew moved into an apartment, all their belongings in

sealed plastic containers and after 15 minutes complained that they

were sick from mold and that all their belongings were contaminated.

This was not a " hit " like many of us experience, this was their

FIRST encounter. They filed suit for damages, needless to say they

lost, but they now consider themselves a " mold

victim/survivor/expert " and advise others on the effects of mold.

Nice huh? It's situtations like this that give all true victims a

bad name and when I come across fradulant claims, if there is

someone I can contact I will turn them in. This in the long run

hurts all of us.

Sorry to say, in this world there are always some that are out to

make an easy buck or looking for that big payoff and it will always

catch up with them. I think this is the difference between them and

us, many of us are just trying to recover what we have lost and to

regain our health. There really is no dollar amount that could

replace the life you have lost.

KC

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

by Publishing

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. v. State Farm Lloyds, No. H-04-0352 (S.D. Texas).

Maureen 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.

State Farm Lloyds moved the case from state court to the U.S.

District Court for the Southern District of Texas in January 2004.

said in an amended complaint that she reported seven

instances of water intrusion or leaks from an air conditioner and

water heater between Jan. 2, 2002, and Aug. 14, 2003. She also

asserted in her complaint that State Farm denied a 1999 claim for

damage from an overflow in an air conditioner pan, which resulted in

mold damage.

filed suit after State Farm Lloyds denied a 2004 claim for

mold and water damage related to an overflowing French drain.

complained that State Farm hired an engineering firm known

for bias toward insurance companies, and that the carrier's failure

to pay for adequate remediation caused to suffer permanent

injuries and incur $100,000 in medical expenses.

State Farm filed a counterclaim and affirmative defenses on March

31, alleging that was guilty of fraud in claiming additional

living expenses for herself and her mother, Henrietta White.

State Farm paid a total of $126,680 between April 2002 and

April 2004 based, in part, on documents provided showing a

monthly rental fee of $4,500 to 'Triangle Trust.'

failed to appear for a June 21 hearing on pending motions and

on June 27 her attorney notified the court that documents submitted

by and White in support of 's attorney informed the

court on June 27 that various documents submitted to the court by

and her mother were false.

Counsel also informed the court that was withdrawing all

claims against State Farm Lloyds. State Farm decided to pursue its

counterclaim.

filed a pro se bankruptcy petition on July 7, which

temporarily halted proceedings in the civil action. The bankruptcy

court granted State Farm's motion for relief from the automatic stay

on Aug. 11, and on Oct. 13, U.S. District Judge Lee H. Rosenthal

issued Findings of Fact and Conclusions of Law in State Farm's favor.

Relying on deposition testimony, filings from 's two

bankruptcy proceedings, and drawing adverse conclusions from

's assertion of her Fifth Amendment rights during an earlier

hearing, Judge Rosenthal concluded that had submitted

fraudulent lease documents and that her actions voided the insurance

contract.

Judge Rosenthal also concluded that 's bad faith and statutory

claims against State Farm Lloyds were brought in bad faith.

Judge Rosenthal concluded that 'Triangle Trust' was actually a trust

created in 2000 by 's mother for estate planning purposes, and

that the house rented for $4,500 was actually purchased by

and her mother and was the security for a monthly mortgage of

$1,156.90.

The judge also noted that while represented to State Farm

that the replacement value of her personal property was $341,759 and

she owned original paintings by Renoir, Rembrandt and Picasso, she

stated in bankruptcy proceedings that she owned collectibles worth

$2,500 and personal property valued at $1,300.

Judge Rosenthal also noted discrepancies in lost business income

reported to State Farm and her representation to the bankruptcy

court in 2001 that she had no income from self-operated businesses.

Judge Rosenthal ruled that State Farm was entitled to recover from

the difference between the actual mortgage payments made by

and the payments made by State Farm, or $80,234.40, and

attorneys fees and costs to State Farm for the cost of defending her

bad faith claim and prosecuting its counterclaim.

The judge issued a separate order on Nov. 16 ordering to pay

State Farm Lloyds $129,150 in fees and $12,281.34 in costs.

F. Jr. and P. of Houston represented

.

State Farm Lloyds was represented by W. , Deborah

E. Rank and Holly W. Kowis of Disiere in Houston.

For More Information on this article, please click on the links

below:

Related Document: Findings of Fact - MOL-0511-06 (PDF format)

Related Document: Order - MOL-0511-07 (PDF format)

Related Document: Complaint - MOL-0511-08 (PDF format)

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