Notice of Service of Process

TV / ALL

Transmittal Number: 24829587

Date Processed: 04/27/2022

Primary Contact: SOP Team nwsop@nationwide.com

Nationwide Mutual Insurance Company

Three Nationwide Plaza

Columbus, OH 43215-2410

Electronic copy provided to: Ashley Roberts

Entity: Nationwide Mutual Insurance Company

Entity ID Number 3277054

Entity Served: Nationwide Mutual Insurance Company

Title of Action: Fair Oaks Apartments, LLC vs. Nationwide Mutual Insurance Company

Matter Name/ID: Fair Oaks Apartments, LLC vs. Nationwide Mutual Insurance Company

(12233058)

Document(s) Type: Citation/Petition

Nature of Action: Contract

Court/Agency: Taylor County District Court, TX

Case/Reference No: 28509-B

Jurisdiction Served: Texas

Date Served on CSC: 04/26/2022

Answer or Appearance Due: 10:00 a.m. on the Monday next following the expiration of Twenty days

Originally Served On: CSC

How Served: Personal Service

Sender Information: The Hodge Law Firm PLLC

n/a

Information contained on this transmittal form is for record keeping, notification and forwarding the attached document(s). It does not

constitute a legal opinion. The recipient is responsible for interpreting the documents and taking appropriate action.

To avoid potential delay, please do not send your response to CSC

251 Little Falls Drive, Wilmington, Delaware 19808-1674 (888) 690-2882 | sop@cscglobal.com

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 1 of 35 PageID 6
THE STATE t3F TEXAS

Case No. 28609-8 

• ~ - a~-~. ~ 

NC3TICE TO DEFENDAN7: "The citation shali include t#►e fcyllowing notice to the defrendant: 

"You have been sued. You may employ an attorney. If you or yoor attomey do not file a 

written answer with the clerk who issued th"rs citation by 10:00 a.m. on the Monday next 

follovuing the expiration of twent,y deys after you wrere servecf this citation and patition, a 

defattlt judgrnent rnay be taken againsfC you. ln adeiiition to filing a writtlen ensvuer wiith the 

clorlc, you nay be rerluiredl to make inirtidl disclosures to the other parties oi: this suiL 

"1"hese rlisclosures generally must Ise rnado no leter than 30 days after you f•ile your answer 

wiith tte clerlk. Find out mor+e at TexasLawWelp.org." 

Tt3: Nadonwide Mntuel lnsurance Compeny 

I~gistered Ag+ent: Corpror;ation Service Cornpany 

211 E 7th Street Suite 620 

Austin, Texas 78701 

Defendant, GR£ET1MGS: 

You are hereby commanded to appear by filing a written answer to the Citation at or 

befor+e ten o'cic3cic A.M. of the Nlonday next after the expiration of twenty days after the date of 

servico of this citation before the Honoreble 1 04th Distrlct Court raf Taylor County, Texes, at the 

Courthouse of said Count,y in Abilene, Texas, 

Said PisintifiPs Petti"tion was flled in said Court, by Shaun 11V Hodge, 221'i Strand Suite 

302 Celveston TX 77550 dn December 29, 2i321 in this case, numbered 28509-B on the docket 

of seid court, and styled, 

FiA►iR ir'3AKS APART11diENTS, LLC 1TS. NATiON{NIDE NIUTUJ4L INSL1Ri4NCE CL?IfiiPANY 

The nature of Plaintiffs demand is fuily shown by a true and t;orrect copy of the Citation 

accompanying this citetion and mad+e a part hereof. 

The offlcer earecuting this writ sheli pramptly serve the seme according to r+equirements of 

1avv, and the mancietes hereof, and make due return es the law directs. - -- - 

issued and given under my hend and the seal of said Caurt at Abilene, Texas, on thls the 

14th day nf Ailarch, 2022. 

Attached Per Request of Attorney; 

Cleris's Name and Address; 

T,ammy Robinson, District Clerie 

Teylor County Courthouee 

Suite 400 

Abilene, Texas 73E02 

~ 

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iiiiiiiii 

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Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 2 of 35 PageID 7
2tf509-B 't04th district Court 

Fair f3alrs Apartrnents, LLC vs. Nationuuide Mutual lnsurance i;nmpany 

Exanuted when ropy is deliveracl. 

This is a true topy rrf tha original citatinn, was dalivas ad ta dafendant csn tha 

day nf

, Ufficar 

County, Texas 

By: , Deputy 

ADDRESS FM SEIMGE: 

Natir,rtwide Mutua11nsurance Company Registered Agent; Corporation 

Service Company 211 !E 7th Street Suite 620 Austirrt, T'exas 78701 

OFF'1dER'S RETt1Rtti1 

Canie to iiand on the day of , 2t? , at , ock 'lo. .m., and 

axenutted in CDunty, Texas by dalivaring tca each of the witNn named dafendants in 

persr3n, a trua ropy of thts Gitation with tha rlata of del►very endorsed than?on, tngether with the 

accompanying copy of the Citation at the fc>ltnwing timas anri pTaces, to-wit: 

Nama DateMma Placa, Drsurae and Distance froin Courthatasa 

And nat axmutad as to the defendanqs), 

Tha diligance used in finding said dafendant{s} being: 

and the r.ausa or failure to execrta this pror,ass is: 

and tha infrarmation raceived as to the whareabouts of sairl dafend"s) being: 

FEES: 

≥5arvinig Petition and Copy ~ 

Totai $ 

, C7fftcer 

Cflunty, Texas 

L-IN 

Aft•iant 

-- -- In accordance vuith Rule 107. Thze officrzr or auttanrized psrson vsaho serves, or attempts to serve, a citatican 

shall sign tha ratum. The stgnatura is not raquired tn be varified. If tha return is signed by a pason ottmr 

than a sharitf, ccnnnstable or tha derk of ths court, tha ratum must eith+sr bn verifed or be signed under 

pertalty ofi parjury and corrtain the fallovuing statement: 

"My narna is my date nf bittt is. and my 

address is 

1 dEt;LARE URdER PENALTY OF PER.Ji.3RY THAT THE Ftr►REGfliNCC IS TRUi= ANd Ct7RREGT. 

Executad in daunty, Stata rrf , on ftw day of 

declaranVAuthoriasd Process Servar 

(id # 8 expiration of eerti₹ication) 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 3 of 35 PageID 8
Filed 12129)2021 2:31 PA 

Tammy Robinsoi 

District Cled 

Taylor County, Texa; 

Tammy Robinsoi 

CAUSE NO. 28509-B 

FAIR OAKS APARTMENTS, LLC § IltT THE DISTR.ICT +COURT OF 

~ 

Puina'r;~; § 

§ 

§ Tsylor r-ounty -104₹h District Court V. § JUDICL4LL DISTRICT 

~ 

NA°I'I~`JNWIDE AIUTUAL § 

TNSURANCE COMPANY, § TAYLOR +COUNTY, TEXAS 

Defertdant 

I'`LAINT1TF'S ORIGIl1TAL pETITIC3IV 

104ywr:'r:9111 CS)~[~~~~. 1 ~r~ ~ ~ rr~ • 1~ 

COMES NCW, F.AIE. OAKS APARTMENTS, LLC (hereittafter:rel"erred to as "I'laintiff')>

and ~iles this 1'1;`rinti;~s Oraginal Pshriori, complainin,g af NATIONVVIDE NIUTUAL 

INSURANCE COIVIPANY C"TJefendwt"), and for cause of aciian, I'1aintiff would respecMly 

sliow Ibis honorable Court Ihe foh©wing: 

,_0_ _ . E N . 

$, 

F. - U

.

, x. ; 

1. Plaintiff intends discoveryy in fbis case be conducted under #he provisions of Texas Rule of 

Civil ;Procedure 190.4 (Level 3), and request that the Court enter an appropriate scheduling 

order. 

2. I'1aintiffs, Fair t}aks Apartmenls, LLC, is a lilmited 1iability cornpany witli Yts primary place 

of business in Tay7c;!r Cnunty, Texas. It is represented by tlle Hadge Law Firm. 

3. Defendant, I+Tatic►n,wide Mutual Tmumce Cnmpany, is a foreign insiwmce cnmpany 

registered with the Texas IDepartinent of Snsurance engaging in the business of iuswrance 

PLAnUrrF ORIGIvnr. PE'r.rrsorr Page I of 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 4 of 35 PageID 9
in the State of Texas. Defendant may be served with process by serving its registered agent 

at CORPORATION SER"V10E COlVWAN'Sr', 211 E 7m STREET, SUTTE 624, 

AUSTIN, TEXAS 78701. 

JURISDICTION AND VENUE 

4. The Court has jurisdiction over this cause of action because the amount in controversy is 

within the jurisrlibtional limits of the CourL Plaintiff is seeking monetary relief over 

$1,000,000.00, including damages of any kind, penalties, costs, expenses, pre-judgment 

interest, and attorneys' fees. 

5. The Court has jurisdiction over Defendant because this Defendant engages in the business 

of insurance in the State of Texas, and PlaintiWs causes of action arise out of this 

Defendant's business activities in the State of Texas. 

6. Venue is proper in Taylor County, Texas, because the insured property at issue is situated 

in this county and the events giving rise to this lawsuit occurred in this county. 

FACTS 

7. PLaintiff is the owner of Texas insurance policy 3019402005 (hereinatfter the "Policy"), 

which was issued by Defenrlant. 

8. Plaintiff owns the insured property, which is specifically located at 502 N. Willis St., 

Abilene, Texas 79603 (hereinailer the "Property"). 

9. Defendant sold the Policy insuring the Property to Plaintiff, 

10. t?n or about February 21't, 2021, a statewirle deep freeze Caused extensive damage, 

including a pipe burst, to the insured Property. 

Pi.AnvaU►F piucnvai. PZrrriox Pagc 2 oi 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 5 of 35 PageID 10
11. Plaintiff suhnfitfied a c1aiin to Defendant against fihe Policy for damages the Property 

sustained as a result of the storrn evennt. L' 1pon information and trelief, Defendant assigned 

numher fi03330-GL to the Aim. 

12. PlaintYff asked tltat Defendant cover the cost of repairs to the Property, pursuant to tlle 

Policy. 

13. Defendant inapected tlLe property and did not issue a paytr►ent to Plaintifffor the damages. 

Defendant clairnrned that policy exclusions applied to the type and cause of damages. 

14. Plaintrff contra.cted with a public arijuster, ~VYr. Ca1 Spoon, to conduct an objective 

evatuation of their darnages. 

15. C}n Apri126th, 2021, Mr. Spoon inspected the Property and found considerable applicable 

covered damages.He provided an estimate and a sworn proof of loss to Defendant the 

fo11owing day. 

16. Shordy thereafter, 1V1r. Spoon conducted ajoint reinspection of tlae property with 

Defendant's representative and, sdlrsequently, made minor adjustments to his estimate 

vvhidh now totaled $3,008,598.96 in covered damages. Dn May 51, 2i121, he provided this 

esfimate to Defendant. 

17. Defendant then deployed Aft. Drew Lindemann, P.F. Associate of Envista Forensics to 

assess the danages snd cmse thereof: Hmvever, his investigation was c1early outcome 

driven and merely reiterated Defendant°s preexisting beliefs. 

18. Defendant, on rnuitiple rrccasions faiXed to properly rnspect the properry and failed to 

properiy scope the loss by inttentianai:iy ignoring areas of damage and turning a blin+l eye 

to the true extent of the loss. 

PLAPaW OMG*WAL PKrrrzON Paga 3 oi 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 6 of 35 PageID 11
19. Defendant set about to deny andlor underpay on properly covered damages. As a result of 

Dofendantys unxeasonable immstigation afthe elaim, itruluding notproviding fiill ooveragu 

for the damages sustained by Plaintiffs, as well. as under scoping the damages during its 

investigation and thus denying adequate and suif"icient payment to Plaintiff to repair tho 

Property, Plaintiffs claim bvas improperly adjusted. The niishandlyng ofPlaintiff's claiYn 

has also caused a tlolay in Plaintiff's abifii.y to fully repaiir tho Property, which has resulted 

in additional daimages. Tv this date, Plaintiffhave yet to receive lhe full payment to which 

they ure entifiled under the Pdlicy. 

20. As detailed in the paragraphs below, Defendant wrongfiilly denied Plaintiff's clahrn far 

repairs ofthe Property, even though the Policy provided coverage for losses such as those 

sufferod by Plaintif~'s. Fur#hanore, Defsndant underpaid some ofPlaintiffs claiias by not 

providing ftifl coverage for thu damages sustained by Plaintiffs, as well as under- scoping 

the damages during its investigation. 

21. 'po datoy Defendant contiriues to delay in the payment .for the damages to the prcrperty. As 

such, Plaintiffhave not been paid in full for the damages to the Property. 

22. Defendant failed tfl per~'c~rm its contractual diities tn adequately cozupensate Pla:intiffunder 

the terms of the Pblicy. Specifically, it refused to pay the full proceeds of the Policy, 

although rlms dernand was made for prooeetls to be paid in an amount sufficient trs cover 

the dauaged property, and al:l conditir►ns precedent to recovery upon the Policy had been 

uarhud nut an.d aco+amplYshed by the Plaintiffs. Piefendad's concluct constitutes a breach 

of the Ynsurance contract between I)efendant and Plaintiffs. 

23. Defemdant misrepresented to Plaintit'f that cetain datnage to the Property was not covered 

under the Policy, even though the clamage was caused by acoverod occurrence. 

PtarrtTHF CDMGMnt. PErrriOrr Page 4 of 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 7 of 35 PageID 12
Defendant's conduct constitutes a violation oftbe Texas Insurance t;ode, Unfair Settlernent 

1'ractices. '1,'mL INs. Cotw §541.060(a)(1). 

24. Defendant f'ailed to make an attempt to settle Plaintiffs Glaun in a 1'air marruer, altlsough 

they were aware of their liability to P1aintiff under the 1'olicy. Defendant's conduct 

constitutes a violation of tlae Texas Insurance Code, Unfair Settlement Practices. 'T'Ex. INs. 

CoDE §54l..060(a)(2)(A)-

25. Defendant failcd to explain to Plaintiff the reasons for tbeir offer of an inadequate 

settlernent. SpecYfically, Defendsnt failed to off'er Plaintiff aderluate cornpensation, 

wrtbout any or adequa.te explanatiari wby full payment was not being made. Furtberinore, 

Defendant diid not cornnuricate that any fiitare settlernents or payrnents would be 

forthcoxning to pay for the entire losses coverred under tbe policy, nor did tbey provide any 

or adequate expXanation for tbe failure to adequately settle PlaintiWs claim. Defendant's 

conduct is a°violatlon of tbe Texas Insurance Code, Unfair Settlement Practices. TEx. INs. 

CoDE §54Y.{t60(a)(3). 

26. Deffendant failed to a£6rm or deny coverage of Plaintifrs claim within a reasonable time. 

Slaecifically, Plaintiffdid not reedve tiriely in.tlYcation of acceptance or rejection, regarding 

the fall and entire claint, in writing froxn Defendant. Defendant's conduct constitutes a 

vralation of the Texas Insumnce Code, Unfair Se#tlement Practices. TEx. TNs. CoDE 

§541.060(a)(4). 

27. Defendant refused to fully compensate 1'lsintiffs, under the tenrns of the Policy, even 

tbough Defendaut failed to conduct a reasonable investigattion. Specifically, Defendant 

perfortned an outcome-oriented iuvestigation of 1'lalntifrs claim, which resulted in a 

biased, unfair, and inecluitable evaluation ofPlaintif£"s losses ou the Property. Defendant's 

PLaMW OMrZvAL PErrrxarr Page 5 of 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 8 of 35 PageID 13
eonduct eonstitutes a violation of the Texas Insurance Code, Unfair Settlement Practices. 

TEX. lNs. CODE §541,060(a)(`7). 

28. 1"Jefendant failed to rneet its obligations under tlse Texas hisuranee Cnde regarding timely 

aclmowledging Plaintiff7s el" begisnring an investigation. of Plaintiff s claim, and 

requesting all information reasr,nably necessary to investxgate Plaintiffs claim, vvithin the 

statutoriily mandated time of "receiving notioe of Plairatifrs claim. Defendant's eonduet 

eonstitutes aviolation of the Texas Insurance Code, Prompt Payment of Claims. TFx. INs. 

CoDE §542.t;55. 

29. Defersdant farled to aeeept or deny Plaintiffs fiW1 and entire clainai within the statutorily 

mandated fime ofreceiving dll rrecessary information. Defendant's eonduct eonstitutes a 

violatYan of the Texas Insuranee Code, Prompt Payment of Claims. Tg,x. INs. ConE 

011 " 

30. Defendant failed to 7neet its ohligations under the Texas Insuranee Code regarding payment 

of elaim wi.thout dela.y. Speoifieally, it has delaycd full payiment ofPlaintijWs clairn longer 

than allowed and, to zlate, Plaintiff have not received full payment for the claim. 

Defendant's eondnct eonstiftites aviolataon of the Texas Insurance Code, Prrsrnpt Payment 

flf CXaims. TEx. M. CoDE §542.058. 

31. P`rom and after the tirne Plaintiff°s elmm ww presented to Defendant, the liability of 

Defendant to pay the full claim in aceordauce vvith the ternais of the Policy was reasc,nably 

e1ear. However, Defendant has refused to pay Plaintiff in full, despite there being no basis 

wbiaatsoever on whioh a reasonable insuranee eompan.y would have relied to deny the full 

payment. Def'endant's oonduet constYtutes a breaeh of the rommon law duty of good faith 

and fair dealing. 

PLAmrrW t'?IurMAx. PErrriON Page 6 of 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 9 of 35 PageID 14
32. Defendan lnowingly or reckl,essly made false representations, as described above, as to 

material 1'acts and/or knowingly conceal+ed all or part of material information from 

Plaintil'fs. 

33. As a resnit of Defeniiant's wrongful acts and ornlssrons, Plaintiffwere forced. to retain the 

professYonal services of the a₹torney and law ffim for representation with respect to these 

causes of action. 

CAUSES HF ACTIHN 

34. Defeudan₹ is liable to Plaintiff 1'or intentional breach of contract. as 'well as intentional 

violations of the Texas Insurance Code and beceptive Trade Practices Act, intentional 

hreach ofthe cornrraon lary duty of good faith and fair dealing, and comimon law fraud. 

112114, ■ ~; I v r , 

35. Tlxe Policy is a valid, hinding, and enforceable contraet between Plaintiff and Defendant. 

36. Def'endant's ctandiuct constitutes a breach of fhe insurance contract made beiween 

Del'endant and Plaintiffs. 

37. Defendant's fail°nre and/or refiisal, as described above, to pay the adequa₹e compensation 

as it xs obligated to do under the terus ofthe Policy in questionx and under ₹he laws ofthe 

State of Texas, consti₹utes a hreach of I)efexadant's insurance contract ivith Plaintil:fs. 

38. The Defendant's breach proximately caxtsed PlaintiWs lnjuries and damages. 

39. ,All oonditions precedent re+quired under the Policy have been perforined, excusezl, waived, 

or otherwise sa₹isfied by ₹h+e Plaintiffs. 

NHNCOMPIaIANCE WITH TEXAS IIOTSYTRAN'CE C(3DE: 

I7NFAIlt SETTLEMENT PRACTIC;ES 

PLAmrrfffF U1UGnvAL PExrriorr :P'age 7 of 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 10 of 35 PageID 15
40. IJcfendant's conduct constitutes multiplo violations ofthe fiexas Insurance Code, Unfair 

Sctt;lcmcnt p`racticcs. "1Ex, Ii's. CoDE §541.060(a). Al1 violations under this articic are 

madc acti.onable by'1:'Ex. It4s: CoDE §541.151. 

41. 13efcndant's unfair sctticnient practicc, as dcscribcd above, ofmisrcpresenting to Plaintiff 

niaterial facts rclating to the covcrage at issuc, constitutcs an unfai.r method of competition 

and an unfair and dcccptive act or practicc in thc busincss ot: insurance. 'lEx, lNs. CoDE 

§54I.OSO(a)(1). 

42. bcfendant's unfair sctticmcnt practioes, as dcscribcd abovc, of hi%ling to attcmpt in good 

faith to effectuatc a. prorrrpt, fair, and equitable settleanent of tbe claiurn, cvcn though 

Dcfcndant's liabilit,y undcr the ;policy was reasonably cicar, corstitutes an urfair rnetliod 

of competition and ari unfair and deceptive act or practice in the busincss of insuran+r,c. 

'1Ex. Tr7s. CoDF, §541.060(a)(2)(A), 

43. I7efendarnt's unfaa.r sctticment practices, as described above, of failing to promptly provide 

the Plaintiffw7ith a rcasonablc explanation ol'thc basis in thc policy, in relation to the facts 

or applicabie raw, for its offcr of a compromise scttlemcnt ofthc craim, constitutes an unl'air 

rnothod raf compctition and an unl'air and doccptivc act or practice in the busiuess ot' 

insurancc. TEx. INs. CoDE §541.O6O(a)(3). 

44. Defenudant's unfair setticmunt practiccs, as dcscribcd abo°vc, ol' failing within a rcasonable 

tim:c to affrm or dony covcrage of thc claim to Plaintiffs, or to submit a reservation of 

rights to plaintiffs, constitutes an unfair mcthod of competitirrn and an unfair and deceptive 

act or practic$ xn the business of insurance. TEx. INs. CoeE §541..060(a)(4). 

45, 17cfcndant's unf'air settlement practices, as dcscribcd above, of rcfusing to pay Plaintiff's 

claixn without conducting a rcasonable invcstigation, constitutes an unfair method of 

PLAn+rrW OauGnvAr. PErrriorr I'age 8 oi 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 11 of 35 PageID 16
competition and an unfair and deceptive act or practice rn the business of insurauce. '1`Ex. 

INS. CODE §541,000(a)(7). 

,46. Each of the forego%ng unfair settlernent practices were cozrapleted, know%ngly by the 

Defendant and t~vere a producing cause of PlaintifPs injuries and damages. 

:7 ` " i 1` 7 1 ! ~It 

47. Tbe Claim is a clairn under an insurance policy tivith tbe Defendant ofwhicb Plaintiff gave 

proper notice. T'he Defendant is liable for the Claim. Defeudant's conduct constitutes 

multiple violations ofthe'Texas Insurance Code, Prompt Payment ofClaims. Ar1 violations 

naade under this article are made actionable by'IEx. fNs. CoDE §542.0bU. 

48. Defendant's failure to acicnowledge receipt ©f Plaintifrs +claim, cooamence Ynvestigation 

of the claim, andlor request from Plaintiff aTl items, statements, and forius that it reasonably 

believed would be reqnirred tivitlii.n tbe apphcable time constrain"ts, as described above, 

coustitutes a non prompt paynient of clairns and a violation of fiEx. INs. CODE §542.055. 

49. Defendant's failure to notify Plaintiff'in writing of its acceptance or rejection ofthe claim 

within the applicable time constraints, constitutes a non-prompt paymenfi of tbe claim. 

Ilix, INs. CoDF, §542.056. 

50. Defendant's delay of the payment of Plaintiffs claim follovving its recerpt of all items, 

statenents, and forms reasona.bly requested and required, longer tban tbe amount of time 

provided for, as descrribed above, constitutes a non-prompt payment of the claim. TEx. 

SNs. CoDE §542.058. 

31. Each of thie foregoing unfair settlemnt practices were completed lmotvingly by the 

Defendant and were a producing cause of Plaintifi's Wtries and damages. 

~ .~_ : IFOUS s I M: ~ .~i

PLAnurWOPucE1qAr. PE=oN Pap 9 nf 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 12 of 35 PageID 17
52. 'fhe Defendant breached the commou law duty of good faith and fair deali.ng owed to 

PlaintiB` by denyyng or delaying payrrsent on the Claim when I7efendant lcnew or should 

have known tbat liability was reasonably clear. 

53. Defendsrnt's failure, as described above, to adequately and reasonably investigate and 

evaluate Plaintiff's claim, although, at that time, Defendant knewv or shourd have known 

by the exercise of reasonable diligence that its lrability -vvas reasonably clear, coustitutes a 

breach of the duty of good faith and fair deafing. 

54. Uefendaut's conduct proxiinn"tely caused Plaintiffinjuries and damages. 

55. Defendan.t's cflnduct violated the T+exas Deceptive Trade Practices Act, TEX. BUS. & 

CflIVI. C+0!DB § 17.41, et seq. (herehtafter the "DTPA") by engaging in "false, misleading 

or decept"rve acts and practioes." 

56. Plaintiff is "consumer[s]" io that Plaiutiff acquired goods andlor services by purchase, and 

the goods andlor services form the basis ofthis actiou. 

57. The Defendant committed numerous violations of the Texas I3TPA, insofar as I3efendant. 

a) Represented that goods or services have sponsurship, approval, chamcteristics, 

ingredients, uses, benef ts, or rluautities which they do not have, 

b} Represented that an agreernent confers or involves riglitss remedies, or obligations 

whYcla it does not have +or involve, or which are prohibited by law; 

c) Failed tu disclose informsition concerning goods or services which was lmown at 

the time of the transaction wh,en such failure tr, disclose such infortnation was 

intended to induce the cousumer into a transaction mto which the consumer would 

not have eotered had the infortuationbeen cisclosed; 

d} t"senerally engaged in unconscionable courses of action while handling the Claim; 

and/or 

e) Violated the provisions of the Texas Insorance Code des+cribed herein. 

PLAuffffF OIuGnvAL PE=orr . Page 10 ot 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 13 of 35 PageID 18
58. The Defendant took advantage of the Plaintiff.s lack of knowledge, ability, experience or 

capacity to a grossly unfair degree and to the Plaintiff detriment. The Defendant's acts 

also resulted in a gross disparity between the value received and the consideration paid in 

a teansaction involving the transfer of consideration. As a result of the Defendant's 

violations of the DTPA, Plaintiff sufferei actual damages. In addition, the Defendant 

committed the above acts knowingly ancUor intentionally, entitling Plaintiff to three times 

Plaintiffls damages for economic relief. 

CONIlMON LAW FItAUD - 

59. Defendant is lYable to Plaintiff for common 1aw fraud. 

60. Each and every one of the representations, as described above, concerned material facts for 

the reason that absent such representations, Plaintiff would not have acted as they did, and 

which Defendant knew were false or made recklessly without any knowledge of their truth 

as a positive assertion. 

61. The statements were made with the intention that they should be acted upon by Plaintiffs, 

who in turn acted in reliance upon the statements, thereby causing Plaintiff to suffer injury 

and constituting common law fraud. 

62. The Defendant knowingly or recklessly made false representations as to material facts 

and/or lmowingly concealed all or part of material information from Plaintiffwith the intent 

of inducing Plaintiff to accept a denial and/or underpayment of insurance benefits. The 

Defendant allowed Plaintiffto use this information, or lack thereof, in justifiable reliance 

in accepting the denial andlor underpayment. Plaintiff relied upon said statements in 

accepting the denial andlor underpayment of the Claim and suffered in,jury as a result. 

DAM,AGE5 

PL,Uf=oWCaKaL PErrnoN Page 11 o! 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 14 of 35 PageID 19
63. Upon the trial of this case, it shall be shown Plaintiff sustained damages as a result of 

Defendant's conduct. Plaintiff respectfully request the Court and jury award the amount 

of loss Plaintiff have incurred in the past and will incur in the future. There are certain 

elements of damages to be considered separately and individually for the purpose of 

determuung the sum of money that wuld fairly and reasonably compensate Plaintiff for 

injuries, damages, and losses, incurred and to be incurred. From the date of the occurrence 

in question uintil the time of trial of this cause, Plaintiff seek every element of darnage 

allowed by Texas 1aw with respect to the causes of action mentioned above, including but 

not limited to Plaintiff s actual damages, policy benefits, pre judgment interest, post 

judginent interest, consequential damages, court costs, attorneys' fees, treble damages, 

statutory interest, and exemplary damages. 

64. Plaintiff would show that a11 the aforementioned acts, taken together or singularly, 

constitute the producing causes of the damages sustained by Plaintiffs. 

65. The damages caused by hail andJor wind have not been properly addressed or repaired in 

the months since the storm, causing fiuther damages to the Property, and causing undue 

hardship and burden to Plaintiffs. These damages are a direct result of Defendant's 

mishandling of PlanntifFs claim in violation of the laws set forth above. 

66. For breach of contract, Plaintiff is entitled to regain the benefit of the bargain, which is the 

amount ofthe claim, together with attorney's fees and pre-judgment interest. 

67. For noncompliance with the Texas Insurance Code, Unfair Settlement Practices, Plaintiff 

is entitled to actual damages, wliich include the loss of the benefits that should have been 

paid pursuant to the policy, mental anguish, court costs, and attorney's fees. For knowing 

Pl,AnvaW O%ucnvnr, PErtTTrnv Page 12 at 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 15 of 35 PageID 20
conduct of the acts desorribed above, Plaintilf'ask for threa times actaal damages, TEx. INs. 

CoDE §541.152. 

68. For nonootnplianco with 'I'oxas 7nsurance Code, Prompt Payment of Claims, Plaintiff is 

ontitled to tho c1aim amount, as well as eighteen (18) percont interest par annum on the 

aro.ount of such olaim as damages, togetlaer with attomoy's faos. TEx. Irts. CODE §542.060. 

69. For breach of the comaaon 1aw duty of good faith and fair dealing, Plaintiff rs entitled to 

compensatory damages, including all i'orrns of i.oss resuldng i•"rom the insurer's breach of 

duty, such as additional costs, economio hardship, losses duo to nonpayment ofthe aYnriunt 

the insurer owed, exemplary damages, and damages for emotional distress. 

70. For violations of tho Deceptive Trade Praotioes Act,1'laintiff is ontitled to recover actual 

darnages and up to three times PlaintiWs darrages for economic rolief, along with 

attorn+ey's fees, interest and oourt costs. 

71. For fraud, Plaintiff is entitled to recover aotaal damsges and exemplary damages for 

knowangly fraudulent and malicious representa.tions, aiong with attorney's fees, interest, 

aud court oosts. 

72. For the proseoution and colloction of this claim, Plaintiff have been compelled to engage 

the serv'i+ces oi'the attorney whose narne is subsoribed to this pleading. Therefore, Plaintiff 

is entitled to recover a sum for the reasonable and necessary sorvicas ot'Plain.tiiTs attorn.ey 

in the proparation and trial of thxs action, including any appeals tn the Court of Appeals 

andlor fihu Suprame Court of Texas. 

73. Plaintiff is not making any olaYms for relief under federal, Xaw. 

Pa.aWMFOluGMALPLUrr[orr Page 13 oi1S 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 16 of 35 PageID 21
" 1 1 

74. P1aintiffrequest a juay txial and have tendered any and all requisite fees for sueh a1ong with 

the filing of tl.tis ,Plazntiffls Orxginal l'etition. 

REt)UEST FOR DISCLtDSURE 

75. Pursuant to R.ul.e 194 of the Texas Rules of Civil Plrocedure, I3efendant is requested to 

disolose, tvithin ft (50) days of seMce of this request, the information described in Ru1e 

194.2(a)-(I)y 

PIRAYER 

'tiVHEREFORF, Pluintiff respectful:ly reciuest that final judgment be rendered for the 

P1ahitiff as fQllows: 

1) Judgment against Z)efendant for actual damages in an amflunt to be determined by the 

JurY" 

2) Statutory benefits; 

3) Trehle damages; 

4) Exemplary and punitive damages; 

5) Pre-judgment interest as provided by la°w; 

6) Post -judgmeu,t interest as provided by law; 

7) Atixirueys' fees; 

8) Costs of suit; 

9) Suoh other au.d further reliefto Avhich Plaintiffmuy be justly entitled. 

[Signature Page to Fo1lo~v] 

PLAnvxff OIuG*MAt PE=oN Page 14 of 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 17 of 35 PageID 22
Respectfully Submitted, 

ShaunW. Hodge 

Texas Bar No. 24052395 

shodgeahodge~'im.com, 

JahanV. Guram 

Texas BarhTo. 24118917 

jguram@hodgeftrm.com

The Hodge Law Firm, PLLC 

nld Galvestrrn Square Building 

2211 Strand, Suite 302 

Calvestnn, Texas 77550 

Te1ephone: (409) 762-5000 

Facsimile: (409) '163 23U0 

TLAINr= OxIGIvAL PE'rctIaN Page 15 flf 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 18 of 35 PageID 23
Automated Certificate crf eService 

This automated cert'~'icate af service wes created by the e€iling system. 

The filer served this documgnt via emeil generated by the efling system 

on the dete and to the persons listed below. The rules gorrerning 

cer '~"i ~ates r~ f service herre n+~t chenged. Filers rnust stii~ provide e 

certiticet+s of service thet complies with e!I eppli+cable rules. 

Kendel McLeughiin on beha1f of Shaun Hodge 

Ber No. 2,4fl62995 

Icrncleughlin@hodgefirm.corn 

Bnvelnpe ID: 60373721 

Stetus es of 12129I2021 3:02 PM CBT 

Case Ccrntacts 

Name 

ErerkyA.Bethscheider 

BarNumber Email .. 

bbethscheider@hodgefirm.com

Timestampsubmifted 

12129120212:31y07 PM 

Status 

SENT 

shaun Hadge shodge@hodgefirm.com 12129120212:31:07 PM sENT 

Jahan Gursm jguram@hodgefirm.com 12J291202,1 2,31:0T PM SENT 

Kendal tdlcLaughlin kmelaughlin@hodgefirm.com 12Q9JZt1212:31:07 PM SENT 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 19 of 35 PageID 24
Filed 17J2912o212:31 Ph 

Tammy Robinsoi 

District Dleri 

Taytor County, Texe: 

Tammy Robinssoi 

CAIJSE Ni3y 28509-B 

FAIt OAKS APARTMENTS, LLC § IlN THE DISTRICT C+C?URT OF 

§ 

.I'lai~'i.~ § 

§ 

§ Taylor Gouniy -10d₹h Disiric.t L'ourt 

v' § JUDICIAL DISTRItCI' 

~ 

11TA'IIDNWIDDE MITUAL § 

INSLI'RANCE CC)MTPANY, § TAYLt)It. COUNTY, 'I'FYAS 

Defendant 

PLA,INTIFF'S ORIGIiVAL PETITION 

TO THE HONOPAELE T[JDGE C)F SAID C(7TJRT: 

CO11ES NOW, FAIR OAKS APART1V1ENTS, LLC (hereinafter refimd to as "Plaintiff'), 

and Rles this Plaintiffls Or iginial Petition, coYuplaining of NATI©NVVIDE MUTUAL 

INSURANCE C3WANY (<~Defenrlant"), and for caiise of actian, Plaintiff would respectfully 

show this honorable Court the following: 

DISC+OVEItY CONTRCIL PLAN 

1, Plaintiff intends discovery in this case be conductetl imder the provrsions of Texas Enle of 

Civil Procedure 190.4 (Level 3), and request that the Court enter an appropriate scheduling 

order. 

2. Plaintiffs, Fair Oaks Apartments, LLC, is a limiteci liability companny with its primary place 

of business in Taylor County, Texas. It is represented by the I3odg$ Law Fum. 

3. Defendant, NationwYrle Mutual Tnsirrance Company, is a' foreign insurance company 

registered with the Trexas Deparlment ofInsurance en;aging in the business ofrnsurance 

PLAn+TrW 0MGEvat. FEMIOrr Pagc I of 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 20 of 35 PageID 25
;in the State ofTexas. Defendant znay be served wsth process by .sarving Yts registered agent 

at CORPC!RATION SERVICE CO11]CPANY, 211 E -fm STREET, SC7ITE 620, 

,AUSTIN, TEXAS 78701. 

JURISDICTION AND VENUF, 

4. The Court has jurisdictiori aver tbiis oause of aotion because ti.ie amount in controversy is 

with7n the ,jurisdiotional 1im.i#s uf the Court. Plaintiff is seeldng monetary reliaf over 

$1,000,000.00, inciuda"ng damages of any kinci, penalties, oosts, expenses, pre judgrnent 

intmst, and attorneys' fees. 

5. Thu Caurt has jurxsdiction nver Defandant because ft Defendant eng.ages in the business 

of insurance iri the State af Texas, and PlainfiTs oauses of action arise aut of this 

Defenriant's businms aotivities iu the State ofTexas. 

6. Venue is propar in Taylor County, Texas, because the insureci property at issuo is situatez3l 

rn this oounty and the events gfving rise to tilis ia:wsuit rrcourred in this oaunty. 

FACTS 

7. Plain.tiff is the owner of Texas insuran.ce policy 3019402005 (hereinafter ti,.e Y"Policy"), 

whiuh was issued by Defendant. 

8. PL-tintiff uwns the insured prflperty, whYch is specificaily looated at 502 N. VUiilis St., 

Abilene, Texas 79603 (horeinafta the `Prnperty'). 

9. DefenrXant sold the Pohcy insuring the Property tu Plaintiff: 

10. CJn or about p'ebraary 211, 2021, a statewide ciaep freeze oauseci extensive damage, 

including a pipe burst, to the insured Property. 

PLAMW OzuGVUL PMrrsox PAge 2 of 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 21 of 35 PageID 26
11. Plaintiff submitted a elahn tra Defendant against the Policy for darnages the Property 

siistainezi as a resuit ofthhe storrn event. TJpon information and belxel', Defendant assigned 

number 603330-GL to the elain,r. 

12. Plaintiff asked that 13efendant eover the cost of repairs to the Property, iursuant to the 

Poliey. 

13. Defendant inspeeted the property and did not issne a payment to Plaintiff 1'or the damages. 

Defendant elai,rnned that poliey exclusions applied to the type aad cause of damages. 

14. 1'lairtiff eontracted with a public ad,juster, Mr. Cal Spoon, to conduet an objective 

evaXuation of their dainagesy 

15. On April 26th, 2C121, 'Mr. Spoon inspeeted the Property and found considerable applieable 

cc»ered damages. He provided an estimate and a sworn proof of loss t~o D►efendant tlie 

following day. 

16. Shortly ther+eaft+er, Mr. Spoan condueted ajoint reinspection af the property with 

Defendant's representative and, sdbsequently, made mEin.or ad,justments to his estimate 

whidh now tataled $3,008,598.9f> in covered damages. On May 51, 2021, he provided this 

estimate to Defertdant. 

17. Defendant then deployed Mr. Drew Lindemann, P.E. Associate of Envista Forensies tv 

assess the damages and eause therenl: Hawever, bu`ts investigation was dlearly outcome 

driven and merely reitera.ted T,tefendant's preexisting beliefs. 

18. ~'lefendant, on multiple oceasions failed to properly inspect_ the property and ftiled to 

properly seope thhe loss by intentionally igaoring areas of damage and turning a blind eye 

to the tnie extent ofthe 1oss. 

PLiuvaW OMG'avAL PErMOrr P'age 3 of 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 22 of 35 PageID 27
19. Defendant s+et about to deny and/or underpay on properly covered damages. As u rresult o£ 

lDefendant's uxneasonablo invcstigation of the claim, including not providing fiffl coverrage 

for the damages sustained by Plaintiffs, as well as under-scnping thc damages during its 

invcstigation and thus denyiug adecluatu and suff"icicnt paymcnt to Plaintiff to repair the 

Property, Plainti££'s claim was rmprnperly udjustcd. The mishandling o£Plaintifrs +claiYn 

has aIso oausezl a dulay in Plaintiff's ability tr £`ully rcpsir the Property, which hss resulted 

in additinnai damagcs. Tn this datc, Pla.inliffhave ycttn receive the full paymcnt to Nvhich 

thuy are entYtled under thc Policy. 

20. As detailcd in the paragraphs beluw, Defendant wrangfully dcnicd Plaintit'f's claim far 

repairs o£'thc Prolerty} even though tho Policy provided coverage for losses such as thnsc 

suffured by Plaintif£s. Purthermore, Defcndant undcrpaid some +ofPlaintiffs claims by not 

providing M ooverage £or thu dmnages sustained by P1aintiffs, as rvelll as under-scoping 

the damuges during Ytss investigatinn. 

21. To datc, Defendant continues to delsy in the payrnent 1'ur the dainugcs to the property. As 

such, Plaintiff have nnt been paid in full for the dsmages ta the Property. 

22. Dcfendant failed #o perf'arm i#s contractuall duiies to adequately compensate Plainliff'under 

the terms of the Policy. Spccif'ically, it refused to pay the full proceeds nf the Policy, 

a1though duc denand was rnadu £nr prrrcccds to bc paid iun an sznounfi sufficient to cc►ver 

the dsmagcd prnperty, and sil conditions p:reced+ent to rccnvcry upon the Pohcy had been 

cartiud out and accomplxshed by the Plsintiffs. 17cf'endsnt"s conduct cunstitutcs a breach 

nfthe insurunce rontract bctwe$n I3cfendant and Plain#.iffs. 

23. IJe£cndant misreprusonted to Plaintiffthat certain damage to the Property was not coverred 

under the Policy, even though the rlarnage was causcd by a covered occurrence. 

PLaUffWF thur,U"L PE=oN Paga 4+of 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 23 of 35 PageID 28
Defenrlant's conduct cnnstitutes a viulation o#'the Tcxas insurance Code, Unfair Settlernent 

Practiccs. TEx. TNs. CoDE §54l.060(a)(1). 

24. Defendant failed to rnake an attempt to settle Plaintiff's claun in a fair rnanner, althou.gh

thay r,verc awarc of their liatsility to Plaintiff under the Policy. Defendant's conduct 

constitutas a vinlation of the Texas Insurancc Cade, Unfair Settlement Practices. TEx. INs. 

CODE §541.OGt?(a)(2)(A). 

25. Defenrlant failcd to explain to Plaintiff the reasons for their nffer of an inadequate 

settlument. Spccifivally, Dcfendant failed to u~'+~c Plaintiff adcrluata compensation, 

withraut any ur adequate explanatinn why fu11 payment was not being made. Furthermore, 

Defandant did not cumrnunicate that arty future settlerncnts nr payments would be 

forthcoming to pay for the entire 1usses cuvered under the Pnlicy, nur did they provide any 

or adecluatu explanatinn fnr the failure to adeguately scttic PlaintiWs claim. Defendant's 

+conduct is a vinlation nf the Texas Insurance Cocie, Unfair Sutt7ement Practices. TEx. INs. 

CoDE §541.O60(a)(3). 

26. Dcfcndant failed tu affirn or deny coveragc of Plaintiff's claiim within a reasonable time. 

Specificaily, PlaintiffclYtl not receive timcly indication of acceptance or rejcctinn, regarding 

fihe fiull and entire claiin, in writing from Defen.dant. Defendant's conduct constitutes a 

vialatirrn of the Texas hisurance Code, Unfair gedement Praz;ticcs. 'l'Ex. M. CoDE 

§541.060(a)(4). 

27. Defendant rcfuscd ta fiilly compcnsata P.lain.tiffs, undar the terms of thc Pulicy, even 

though Defendant failed to conduct a reasonahle invesrigatic►n. Specyfically, Defendant 

perfnrmed an tsutcorne-nriented invcstigation of Plaintiff's clairra, tivliich .resultcd in a 

biased, unfair, au.d inequitablu cvaluation of Plaintiff's Iosses on the Pruperty. Dcfendant's 

P1.AnfriV (AR1GDUL PEr rsoN Page 5 of 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 24 of 35 PageID 29
r,onduct constitutes a violation of the "Texas Insurance Code, Unfair Settlement Practices. 

T,Ex.:tks. CoDE §54t.b60(a)(7). 

28, Defendant failed to meet its obligatisrns under the Texas hisurance Code regardyng timely 

aclnowledging Plaintifrs claim, be,ginning an investigation nf PlaintiiTs c1aim, annd 

requesting all, inforination reasnnably necessary to investigate Plaintiff's claira, within the 

statutnriily mandated time of meeiving notice bf Plainfffs claim. Dufundant's conduct 

cranstitutes a violation of tbeTexas Insurance Code, Prnmpt Paynent of Claims. T'F-x. INs. 

CODF, §542.055. 

29. I3efendant failed to accept nr deny Plaintiff's fidl and entire dlaiucn within the statutarrily 

mandated tirne ofreeeiving all necessary inforrnation. Defen.dant's condnct constYtutes a 

vinlation of the "fexas Tnsuranee Code, Prompt Paynent of Clairns. TEx. INs. ConE 

§542.056. 

3{l. Defendant failed to xneet its obligations under the Texas insurance Code regardingpayment 

ofclaim without delay. Specifical1y, it bas delayed full payment ofPlaintiff's claim longerr 

tban allowed and, tta date, Plaintiff have ncrt received fiXll paynent fur the ulaim. 

Defendant's conduct constitntes a violativn of the Texas Tnsurance Code, Prnmpt Payment 

of C7aims. fiEx. INs. CoDE §542.058. 

31. P'rnnY an:d after the time PWntiff's nlaun was presented tn Defendant, thu liability of 

Dafendanit tu pay tbe full claim in accordau.ce vvith the tertns of the Policy was reasonably 

claarr. Howevec, Deferi.dant bas refused tu pay Plaintiff in full, despite there being no laasis 

whatsuever vn which a. reasonable insurance company °wuuld bave relied ta deny the fu11 

13ayrnent. Defendant's uonduct constitutes a braach nf the common law duty of gond faith 

and faYr dealing. 

F'LAnvarF t?MGMAL PE=oN I'age 6 of 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 25 of 35 PageID 30
32. Defendant itiiowingty or rrecklessly made false representations, as descrihed above, as to 

material faets andlor knowingly concealed a1i or part of znaterial iinformation from 

33. As a result of Defendant's wronW aets and omissions, Piainriff were foreed to retnin the 

professional services of the attomey and law firin for representation withh respect to these 

causes of action. 

CAUSES ~'!F ACTIiJN 

34. Defendant is iiabl.e to P1aintiff for intentinnal breaeh of eantract, as well as intentionaI 

violations of the Texas Insurenee Cocte and Decepiive Trade Practiees Act, intentional 

breaeh of the eozumon taw duty of gooci faith and fair dealing, and eommon law frraud. 

s 44 XTI *: ~~~FUL411 Oa l \~~ 

35. The Pohey is a vaid, hinding, and enforcesble eontract betvveen Plaintiffand Defendant. 

36. Defendant's conduct constitutes a breach of the insurance eontract nzade between 

Defendant and Piaintiffs. 

37. Defendant's failure and/or .refusal, as describeti above, to pay the adequate compensation 

as it is dbfigated to do under the tem of the Poliny in question, and under the laws of the 

State of Texas, eonstitutes n breach of Defendant's insurance eontrnet with Plainntif`fs. 

38. The Defendant's hreaeh proximately eaused P1aintiTs injuries and dautages. 

39. ,All eonditions precedent required under the I'oiiey have been perfarmed, excused, waivett, 

or otherwise satisfied by the Plaintiffs. 

N'ONCDIVIPLIAANCE WITH TEXAS INSI3RANCE CO►DE: 

UNFAIR SETTLEIAIENT PRACTICES 

PLAUfrEF OxirMALPMMoN Page 7 of 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 26 of 35 PageID 31
40. Defeyadant's conduct constitutes rnultiple violations of tlie Texw Insurance Code, LTnf'air 

Settlernent p`raetices. TEx Ir.s. CoDF, §541.060(a). All violations under titis article are 

made actionable by TEx INs. CoDE §541.151. 

41. Defendant's unf'air scttlement practice, as described above, of misrepresenting to Plaintiff 

material facts relating to tbe coverage at issue, constitutes an unfair method of coYnpetition 

and au unfeir and decepfiive act or practice in thc business of xnsurance. Tex. INs. CorE 

§541.O6O(a)(1 ). 

42. Defendant's unffir seWement practiees, as described abovc, of failing to attempt in good 

fiu1rhh tc+ effcctuate a prompt, fair°, and equitabl.e settletnent of tbe clann3 even thouglr 

Defenzlant's liability undex the Policy was reasouably clear, constitutes an •tmfaiur rnethod. 

of competition and an unfair and deceptive act or practice in tbe business of insurancc. 

'1Ex. INs. CoDE §541.060(6)(2)(A), 

43. Defenrlant's unfai.r settlement practices, as described above, of failing to promptl.y provide 

the P1aintiffwith a reasonable explanation ot`the basis in the t'olicy, in r+elation to the facts 

or applicable raw, for its offer of a compromise settlement ofthe claim, constitutes an un.fair 

metborl oi:' competition and a,n unfair and decepfiive act or practicc in tht; business ol~ 

insurancre. TFx. Ivs. CoDE §541.060(a)(3). 

44. Del`cndsunt's unfair settlemen:t practices, as described abbbove, esl" failing within a reasnnable 

time to a~f'im or deny covcrage of the clain 10 F'laintiffs, or to submm7it a reservation of 

rights to plaint~'f's, constitutes an unfair method of competitiou and an unfair and deceptive 

act or practice in the business of insurance. '1`Ex. Ns. CoDE §541..060(a)(4). 

45, Defendant's unfair settlement practices, as clescribed above, of refusing to pay Plaintiff's 

claim wwithout con+ducting a. reasonabl$ investigation, constitutes an unfair metborl of 

PLanVrMF flxiGEvAL pErsriox Page 8 oi 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 27 of 35 PageID 32
competition and an unfair and dcccptivc act or practice in the business of inswrancc. TEx. 

Irrs. CoDE §54t,060(a){7). 

46, Each of the forcgoing unfaair sctticment practices werc completcd knowingly by the 

Dcfcndant and wcrc a producing cause of Plaiuti#rs injurics aud damagcs. 

1 ~ . ,6 111F91 ~ • . 

-~ ! 

a 6` T 1' - • 

4'7. 'I'he Clairn is a claim mnder an insurance poiicy with thc Defcndant of urluch Plaintiff gave 

proper n.otice. The Defeudant is lidble for thc Claixn. Defendant's conduct constitutes 

multiple violations of the Texas Insurancc Code, Prompt Payment ofClairns. All violations 

made under this articic arc madc actionable by TEx. INs. CoDE §542.060. 

48. Dcfendant's failure to acku.owlcdgc reccipt of PlaintiWs ciaim, comnencc invcstigation 

of thc claim, andlor rcctucst from Plaintiff all itcros, statcments, and forms that it reasonably 

believcd would bc requuirrcd within thc applicablc timc constraints, as dcscribed above, 

constitutes a non prompt payment of claims and a violation af TEx. lrxs. CoDE §542.{155. 

49. Dcfendant's fuilure to notify Plaintiff in writing ofits acccptance or rejection of the c7aim 

withyn the applicabie timc cflnstraints, +ac,nstitutes a nori-prompt paymcnt of thc claim. 

TEx INs. C+oDE §542.056. 

30. Defcndant's deiay of the payment of Plaintiffs claim fo7lowing its receipt of all items, 

stateusents, and forms rcasonably rcquested and required, longcr thau the amount of time 

provided for, as dcscribcd above, constitutcs a nonprompt payment of the claim. TEx. 

Trts. CoDE §542.058. 

51. Each of tlie fore,gfling unfair settlement practices u;crc completed knowingly by the 

Dcfendant and werc a produoing cause of Plaintiff s injuries and damages. 

PLAPaW ihuGnvAL pE=oN Page 9 oi' 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 28 of 35 PageID 33
52. T"he Defendant breached the common law duty of good faith an+d fair dealing owed to 

Plaintiff tiy denying or delaying payment on the Claim wlaen Defendant knew or shovlrl 

have known that liability was reasonahly clear. 

53. Defendant's failure, as desoribecl aibove, to adequa.tely and reasonably investigate and. 

evaluate p`la~n~~' ~ s claim, although, at that tiine, Defendant knew rsr should have known 

by the exereise of reasonabie diligence that its liability was reasonably elear, constitutes a 

breach of the duty of good faith and fair dealing. 

54. Defendant's conduct proximately oaused Plaintiff injuries and da3mage,s. 

ViDEATIDN t3F TEXAS DECEFTIVE TItAi1E p`ItACTICES ACT 

55, Defendant's conduct violated the Texas Deceptive Trade Practrces Act, °TEX BUS. & 

CflNI. CDDE § t'1.41, et seq. (hereinafter tlie "DTPX") by engagiug in "t'alse, Ynisleading 

or deeeptive acts ancl praetiee.s." 

56. Plaintiff is "consumer[s]" in that Plaintiff acquired goocls and/or services lay purchase, and 

the goods anti/or s+ervim fonn the basis of this aefion. 

57. The Defendant committed numerous violations of the Texas DTPA, insofar as Defentlant: 

a) Represented that goods or services have sponsor,ship, approval, charaeteristies, 

ingredients, uses, benefifis, or quantities which they do not have, 

b) Represented that an agreement confers or involves riglits, remedies, or bbligations 

which it does not have or involve, or which are p:rolkibited by law; 

c) Failed to diaclose Ynformation concernYng goods or servioea which was known at 

the tbne of the transaction when such failure to disclose such information was 

intended to induce the consumer into a tranaaction into which the consumer would 

not have entered had the infortnation been disclosed, 

d) Cienerally engaged in unconscionable courses of action while handling the Claim; 

anr/or 

e) Violated the provisions of the Texas Insurance Code described herein. 

PLAH1aM O1uG1vAL PErrrzox lPoge 10 of 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 29 of 35 PageID 34
58. The L)efendant took advantage of the Plaintiff's lack of lca.ovvledge, ability, exparience or 

capacity to a grossly unfair degree an.d to the Plaintiff detriffient. The Defendant's acts 

also resulted in a gross disparity between tha value received and the conside,ration paid in 

atransaotion involving the transfer of consideration. As a ressult of the T)efendant's 

violations of fihe D'I'PA, Plaintiff suffered actual damages. 7.n addition, the I7efendant 

oomrnitted the above aots knowingly andlor intentionally, entitling Plaintiff to three times 

Plaiutiff °s damages for economic relief. 

COMMON LAW FRAUD 

59. P►efendant is liable to Plaintifffor cornmon law fraud. 

6{l. Each and every one ofthe representatitans, as described above, oonoerned rnaterial facts for 

the reason that absent suoh representations, Plamtiff would not have acted as they dirl, and 

which Defendant knew were false or made recklessly without any knowledge of their truth 

as a positive assertion. 

61. The statements were rnade °with the intention that tlyey should be acted upon by Plaintiffs, 

tivho in turn acted in reliance upon tbe statements, thereby causing Plaintiffto suffer injury 

and oonstituting oommon law fraud. 

62. The Defendant knovviugly or reciclessry rnade false representations as to matnrial facts 

anc3lor knowingly concealed all or part of materid inl'ornYation: from Plaintiffwith the intennt 

of induoing Plaintiff tv accept a deniar an.dlor underpaysnent of insuranco benefits. The 

17ofendant a11owecl P1aintiff'to use this information, or 1ack thereot in justifiahle reliazace 

in acoepting the denial and/or underpayrn.ent. Plaia,tiff arel<ied upon said statements ui 

aocepting the denial andlor underpayrnent of the Claim and suffered in,jury as a result, 

~ 

Pa.an"iF UWGWqAx. PErrracnv Page 11 ot 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 30 of 35 PageID 35
63. L1pon the trial of tlus case, it shall be sh+owwn Plaintiff sustairaed zlamages as a result of 

Del'endant's co.nduct. Plaintiffrespectfially request the Court and jury award the amount 

of loss Plaintiff have incurrecl xn the past and will incur in the future. There are certain 

elements uf damages to be considered separately anti individually for the pmpose ol' 

determining the sum of nloney that would fairly and reasonably compensate Plaintiff for 

injuries, dunages, and losses, incwed and to be incurred. From the dateof the occurrence 

in question until the time of trial of this cause, Plaintiff seek every eiement of damage 

allorved by Texas law with respect to the causc~~s of aoEion mentioned ahove, iucluding but 

not litnited tra F'laintiffs actual damages, pclicy beu,+efxts, pre-juclgment interest, post 

judgmeut antemst, consequenttal damages, court costs, atfiorueys' 1'ee.s, treble damages, 

statutory interest, and exernplary damagcs. 

64. Plaintiff would show that all the aforemeniioned actsy taken together or singularly, 

+constitute the producing causes of the damages sustained by Plaintiffs. 

65. The damages causecl by hnil andlor wind have not been properly addressed or reepaired in 

the months since the storm, causing furtb.er rlamages to the Property, and causing undue 

hardshYp and burden to Plairitiffs. These damages are a clirect result of Defendarit's 

~aishandling ofPlaintiTs claim iu, violation ofthe laws set frnrnfih above. 

66. For breach of contract, Plaintiff is enfitled to regain the benehit ofthc bargaairt, which is the 

amount ol'thc claim, together with attorney's fees and pre -judgment internst. 

67. For noncomplxance with the Texas Insurance Code, "Cl`nfair Settlement Practices, Plaintiff 

xs entitletl tra actual damages, which include tlie Ioss of the benefits that should have been 

paid pursuant to the policy, mental anguish, cr,urt costs, and attorney's fees. For knoSving 

P'LAn+afH7 OauGnvAL PErsrsorr I'age 12 or 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 31 of 35 PageID 36
conduct of the acts described above, Plaintiff ask for three times actual damages. TEx. INs. 

CoDE §541.152. 

68. For noncompliance with Texas Insurance Code, Prompt Payment of Claims, Plaintiff is 

enfiitled to the claim amount, as well as eighteen (18) percent interest per annum on the 

amount of such claim as damages, together with attomey's fees. TEx. Irts. CoDE §542.060. 

69. For breach of the common law duty of good faith and fair dealing, Plaintiff is entitled to 

compensatory damages, including all forms of loss resulting from the insurer's breach of 

duty, such as additional costs, economic hardship,losses due to nonpayment of the amount 

the insurer owed, exemplay damages, and daynages for em+otional distress. 

70. For violations of the Deceptive Trade Practices Act, Plaintiff is entitled to recover actual 

damages and up to three times Plaintiffs damages for economic relief, along with 

attorney's fees, interest and court costs. 

71. For $aud, Plawtiff is entitled to recover actual damages and exemplary damages for 

knowingly fraudulent and malicious representations, along with attorney's fees, interest, 

and court costs. 

72. For the prosecution and collection of this claim, PlaintYffhave been compelled to engage 

the services ofthe attorney whose name is subscribed to this pleading. Therefore, Plaintiff 

is entYtled to recover a sum for the reasonable and necessary services of Plaintitfss attorney 

in the preparation and trial of this action, including any appeals to the Court of Appeals 

and/or the Supreme Court of Texas. 

73. Plaintiff is not making any claims for relief under federal law. 

ptAnvaW Oxccuvnt PErrrioN Page 13 af 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 32 of 35 PageID 37
JURY DEMAND 

74,. Plaintiffrequest a jury trial and have tendered any and all requisite fees for such along with 

the filing of this Plaintirs Ur•igirral Petition. 

REOUEST FOR DISCL03URE 

75. Pursuant to Rule 194 of the Texas Rules of Civil Procedure, Defendant is requested to 

disclose, within fifty (5t?) days of secvice of tliis request, the information described in Rule 

194.2(a)-(I)• 

PRAYER 

WHFRFFORE, Plaintiff respectfiilly request that final judgment be rendered for the 

Plaintiff ss follows: 

1) Judgment against Defendant for actual damages in an amount to be determined by the 

Jury; 

2) Statutory beneffts; 

3) Treble damages; 

4) Exemplary and punitive damages; 

S) Pre -judgment iunterest as provided by law; 

b) Post judgment interest as provided by law; 

7) Attorneys' fees; 

$) Costs of suit; 

9) Such other and fiuther relief to which Plsintiffmay be justly entitled. 

[Signature Page to Follow] 

Page 14 ot15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 33 of 35 PageID 38
Respectfiilly Submilferl, 

~. ..~~ ..~ 

k~ . . . .. •' _ .. ..._ ..... 

ShaunW. Hodge 

Texas Baur No. 24052995 

JahanV. Guram 

Texas Barr No. 24118917 

Jgumm@hodgefirm.cam 

Tbe Hodge Law Firm, F'LLC 

CJld Galveston S+quare Building 

2211 Strand, ,Suite 302 

Ga1ves1on., '1'exas 7755t} 

Te1ephone: (409) 762-50t10 

Facsimile: (4t?9) 763-23C10 

• ~ :. •~ ~ ~.~ t 

Pa.AP4W (?Mcn-UL PKrrriOx Page 15 oi 15 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 34 of 35 PageID 39
AutolYiat@d Cel't1ficate tJf eSe1'vICe 

This eutometed certificate af service wes createed by the efiling system. 

The filer served this document via email geneirated by the efiling system 

on the :dete end to the persons listed belcw. The rutes governing 

certifcates of service heve not chenged. Filers must still provide e 

certi~icete of serwice thet cmmplies with ell spplicehle rules. 

Kenda1McLaughlin on hehalf of Bhaun Hodge 

Ber No. 24052995 

kmclaughlin@hodgefirm.com

Envelcpe IC3w 60373721 

Stetus ;:as of 12l29I2021 3:02 PM CST 

Csse Ccntscts 

Name BsrNumber Email Mmestampsubmitted Status 

BeckyA.Bethschaidar bbathschsider@hoclgafirm.crm 12f29I2021 2.31,07 PNi SEN"i' 

Shaun Hodga shodga@hodgefirm.crarn , 12J29120212:31:07 PM SENT 

Jahan Guram jguram@hodgefirm.com °i2129i2021 2:31:07 PiVI SENT 

Kandai 1VlcLaughiin kmciaughiin@horlgeflrtn.c+om 1212912021 2Y31:C17 PNl SENT 

Case 1:22-cv-00065-BU Document 1-1 Filed 05/17/22 Page 35 of 35 PageID 40