Insured Commercial Property Owner Suffering Hail and Wind Damage to Its Roofing System Survives A Motion to Dismiss by Travelers

In Albion Invest. Inc. v. Travelers Casualty Ins. Co. of America, 2020 WL 7041817 (E.D. Tex. Dec. 1, 2020) the court considered a motion to dismiss filed by the insurer, Travelers.  Travelers sought to dismiss the claims of its insured, Albion Investments, Inc. (“Albion”).  Albion owned commercial property which was covered by a policy issued by Travelers.  Albion made a claim with Travelers subsequent to a hail and wind storm that caused damage to its roofing system.  Albion alleged in its complaint that Travelers did not timely investigate its claim and it was not diligent in its work.

Travelers ultimately did inspect the property and its adjuster prepared a denial letter stating that the covered damage fell below the deductible.  Albion claimed that Travelers “did not conduct a thorough investigation of the claim, failed to account for all of the damages covered, failed to fairly evaluate and adjust the claim, failed to perform its contractual duty to compensate Albion under the policy, made misrepresentations to Albion regarding the damages to the Property and whether it was covered, failed to make an attempt to settle the claim in a prompt and fair manner, and failed to explain why full payment was not being made.”  Thereafter, Albion retained its own engineer.  Travelers then agreed to a re-inspection but did not change its coverage position.  Albion retained counsel, made a demand upon Travelers, and eventually filed suit.  Travelers sought to dismiss the suit.  Ruling in the insured’s favor, the court found that Albion had “stated plausible claims upon which relief could be granted.”  Therefore, the case will continue to be litigated.