Summary Judgement Vacated In Policyholder’s Hurricane Harvey Damage Case  (Business Insurance)

Summary Judgement Vacated In Policyholder’s Hurricane Harvey Damage Case

  Tuesday, March 21st, 2023 Source: Business Insurance

A federal appeals court on Friday reversed a lower court ruling in Lloyd’s favor in a property damage case stemming from Hurricane Harvey, ruling that the lower court judge had improperly excluded evidence in the case without the required analysis.

Stafford, Texas-based Majestic Oil Co. purchased a building in Pasadena, Texas, in 2014 which Lloyd’s underwriters insured in 2016, according to Friday’s ruling by the 5th U.S. Circuit Court of Appeals in New Orleans in Majestic Oil Inc. v. Certain Underwriters at Lloyd’s, et al.

The building’s roof leaked after 2017’s Hurricane Harvey, but a dispute arose as to what caused those leaks.

An adjuster hired by Lloyd’s determined it was in poor condition before Harvey. An engineer hired by Majestic said that while it could not rule out that a 2017 storm could have caused the damage ‘it was more likely than not’ caused by Harvey.

After Lloyd’s denied coverage for the damage, Majestic filed suit in U.S. District Court in Houston.

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