IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF TEXAS

BEAUMONT DIVISION

ATLANTIC CASUALTY INSURANCE §

COMPANY §

 §

Plaintiff, §

 §

v. § CA No. 1:23-cv-00031

 §

JOHNNY TRUONG and MY-NGOC §

TRUONG, §

Defendants. §

DEFENDANTS JOHNNY TRUONG and MY-NGOC TRUONG’s 

COUNTERCLAIM AGAINST ATLANTIC CASUALTY INSURANCE 

COMPANY

TO THE HONORABLE U. S. DISTRICT JUDGE:

COME NOW, Defendants, JOHNNY TRUONG and MY-NGOC TRUONG 

(hereinafter collectively referred to as “Counter-Plaintiff” and/or “TRUONG”), in the 

above-styled and numbered cause, and file this their Counterclaim against ATLANTIC 

CASUALTY INSURANCE COMPANY (hereinafter “Counter-Defendant” and/or

“ATLANTIC”) and would respectfully show unto the Court as follows:

FACTS

1. Truong is the owner of a Texas Commercial Insurance Policy (hereinafter 

referred to as “the Policy”), which was issued by Atlantic (referred to herein as “Insurance 

Company”).

2. Truong owns the insured property, which is specifically located at 648 9th

Avenue, Port Arthur, TX 77642 (hereinafter referred to as “the Property”).

3. Insurance Company sold the Policy insuring the Property to Truong.

4. On or about July 15, 2022, Truong’s commercial property sustained fire 

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damage. The fire damaged all areas of the property, including business personal property.

5. Truong timely filed a claim with Atlantic and has cooperated throughout the 

investigation process. Despite the cooperation by the Defendants, Atlantic has failed to 

properly adjust the fire loss claim.

6. Pursuant to the Policy, Truong asked that the Insurance Company pay for 

the damage to the Property. The damage caused at Peck’s property as a result of fire 

damage, a covered cause of loss under the policy, is extensive. Despite Truong timely 

filing the claim, providing all requested documents, this claim was improperly delayed, 

denied and/or underpaid.

7. Adjusters retained by Insurance Company, because of inadequate and 

improper instruction and training, failed to perform an investigation of Truong’s claim that 

met the minimum standards of performance pursuant to industry standards, §§21.203 and 

21.205 of the Texas Administrative Code, applicable law, or otherwise. 

8. The entire investigation into Truong’s claim has been one of delay after 

delay. Insurance Company has based its denial on sections of Truong’s policy alleging 

that the fire was intentional, although there are no facts supporting same.

9. The Insurance Company’s personnel failed to thoroughly review and 

properly oversee the work of its assigned Adjusters, ultimately approving and adopting an 

improper adjustment and inadequate, unfair settlement of Truong’s claim.

10. This unreasonable investigation resulted in the improper denial of Truong’s 

claim.

11. Insurance Company set out to deny and underpay on properly covered 

damages. The Insurance Company failed to provide full coverage for the damages 

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sustained by Truong, and failed to fully scope the damages, and undervalued the damages 

it did account for, thus denying adequate and sufficient payment to Truong.

12. The mishandling of the claim also caused a delay in Truongs’ ability to fully 

repair the commercial property, which has resulted in additional damages. To this date, 

Truong has yet to receive full payment under the Insurance Policy for the damages.

13. The Insurance Company ratified the Adjusters’ inadequate methods and 

investigation, resulting in Truong’s claim being improperly denied. The unreasonable 

investigation of Truong’s claim resulted in the denial of the claim. Truong has suffered 

actual damages resulting from Insurance Company’s wrongful acts and omissions as set 

forth above and further described herein.

14. As detailed in the paragraphs below, Insurance Company wrongfully denied 

Truong’s claim for repairs to the Property, even though the Policy provided coverage for 

losses such as those suffered by Truong. Furthermore, Insurance Company denied 

Truong’s claim by not providing full coverage for the damages sustained by Truong.

15. Insurance Company continues to delay paying Truong for the damages to 

the Property. As such, Truong has not been paid in full for the damages to the commercial 

property.

16. Insurance Company voluntarily assumed a non-contractual obligation to 

inspect and value Truong’s damages, thereby causing its conduct to be governed by the 

applicable provisions of the Texas Insurance Code. However, it then failed to comply with 

its duties and obligations under the law for inspecting and valuing covered losses, and 

likewise failed to perform its contractual duty to adequately compensate Truong for monies 

owed to them under the Policy. More specifically, but without limitation, Insurance 

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Company failed and refused to pay the full proceeds of the Policy, although due demand 

was made for proceeds to be paid in an amount sufficient to cover the damaged Property 

and all conditions precedent to recovery upon the Policy had been carried out and 

accomplished by Truong. As such, and as further described herein, Insurance Company’s 

conduct in this regard constitutes both a violation of the applicable provisions of the Texas 

Insurance Code, as well as a breach of the insurance contract between Insurance Company 

and Truong.

17. Insurance Company misrepresented to Truong that the damage to the 

Property was not covered under the Policy, even though the damage was caused by a 

covered occurrence. As such, Insurance Company’s conduct in this regard constitutes a 

violation of the Texas Insurance Code, Unfair Settlement Practices. TEX. INS. CODE

§541.060(a)(1).

18. Insurance Company failed to make an attempt to settle Truong’s claim in a 

fair manner, although they were aware of their liability to Truong under the Policy. As 

such, conduct in this regard constitutes a violation of the Texas Insurance Code, Unfair 

Settlement Practices. TEX. INS. CODE §541.060(a)(2)(A).

19. Insurance Company failed to offer Truong adequate compensation, without 

any explanation why full payment was not being made. Furthermore, Insurance Company 

did not communicate that any future settlements or payments would be forthcoming to pay 

for the entire losses covered under the Policy, nor did they provide any explanation for the 

failure to adequately settle Truong’s claim. As such, Insurance Company’s conduct in this 

regard is a violation of the Texas Insurance Code, Unfair Settlement Practices. TEX. INS. 

CODE§541.060(a)(3).

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20. Insurance Company failed to affirm or deny coverage of Truong’s claim 

within a reasonable time. Specifically, Truong did not receive timely indication of 

acceptance or rejection, regarding the full and entire claim, in writing from Insurance 

Company. As such, Insurance Company’s conduct in this regard constitutes a violation of 

the Texas Insurance Code, Unfair Settlement Practices. TEX. INS. CODE§541.060(a)(4).

21. Insurance Company refused to fully compensate Truong under the terms of 

the Policy, even though Insurance Company failed to conduct a reasonable investigation. 

Specifically, Insurance Company performed an outcome-oriented investigation of 

Truong’s claim, which resulted in a biased, unfair and inequitable evaluation of Truong’s 

losses on the property. As such, Insurance Company’s conduct in this regard constitutes a 

violation of the Texas Insurance Code, Unfair Settlement Practices. TEX. INS. CODE

§541.060(a)(7).

22. After receiving notice of Truong’s claim, Insurance Company failed to meet 

its obligations under the Texas Insurance Code to timely and within the statutorily 

mandated time acknowledge Truong’s claim, begin an investigation of Truong’s claim and 

request all information reasonably necessary to investigate Truong’s claim. As such, 

Insurance Company’s conduct in this regard constitutes violation of the Texas Insurance 

Code, Prompt Payment of Claims, TEX. INS. CODE §542.055.

23. Insurance Company failed to accept or deny Truong’s full and entire claim 

within the statutorily mandated time of receiving all necessary information. As such, 

Insurance Company’s conduct in this regard constitutes a violation of the Texas Insurance 

Code, Prompt Payment of Claims, TEX. INS. CODE§542.056.

24. Insurance Company failed to meet its obligations under the Texas Insurance 

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Code regarding payment of claim without delay. Specifically, Insurance Company has 

delayed full payment of Truong’s claim longer than allowed and, to date, Truong has not 

yet received full payment for his claim. As such, Insurance Company’s conduct in this 

regard constitutes a violation of the Texas Insurance Code, Prompt Payment of Claims. 

TEX. INS.CODE §542.058.

25. From and after the time Truong’s claim was presented to Insurance 

Company, the liability of Insurance Company to pay the full claim in accordance with the 

terms of the Policy was reasonably clear. However, Insurance Company has refused to pay 

Truong in full, despite there being no basis on which a reasonable insurance company 

would have relied on to deny the full payment. As such, Insurance Company’s conduct in 

this regard constitutes a breach of the common law duty of good faith and fair dealing.

26. Additionally, Insurance Company knowingly or recklessly made false 

representations, as described above, as to material facts and/or knowingly concealed all or 

part of material information from Truong.

27. Insurance Company’s wrongful acts and omissions, as further detailed 

herein, Truong was forced to retain the professional services of the attorneys and law firm 

who are representing him with respect to these causes of action.

CAUSES OF ACTION

28. In support of the causes of action set forth herein, Truong incorporates by 

reference the allegations contained in the foregoing Paragraphs 1 through 27 as if fully set 

forth verbatim.

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29. Insurance Company is liable to Truong for breach of contract, as well as 

intentional violations of the Texas Insurance Code and intentional breach of good faith and 

fairdealing. 

BREACH OF CONTRACT

30. Insurance Company’s conduct constitutes a breach of the insurance contract 

made between Insurance Company and Truong.

31. Insurance Company’s failure and/or refusal, as described above, to pay the 

adequate compensation as it is obligated to do under the terms of the Policy in question, 

and under the laws of the State of Texas, constitutes a breach of Insurance Company’s 

insurance contract with Truong.

NONCOMPLIANCE WITH TEXAS INSURANCE CODE: 

UNFAIR SETTLEMENT PRACTICES

32. Insurance Company’s conduct constitutes multiple violations of the Texas 

Insurance Code, Unfair Settlement Practices. TEX. INS. CODE §541.060(a). All violations 

under this article are made actionable by TEX. INS. CODE§541.151.

33. Insurance Company’s unfair settlement practice, as described above, of 

misrepresenting to Truong material facts relating to the coverage at issue, constitutes an 

unfair method of competition and an unfair and deceptive act or practice in the business of 

insurance. TEX. INS. CODE§541.060(1).

34. Insurance Company’s unfair settlement practice, as described above, of 

failing to attempt in good faith to effectuate a prompt, fair, and equitable settlement of the 

claim, even though Insurance Company’s liability under the Policy was reasonably clear, 

constitutes an unfair method of competition and an unfair and deceptive act or practice in 

the business of insurance. TEX. INS. CODE§541.060(2(A).

35. Insurance Company’s unfair settlement practice, as described above, of 

failing to promptly provide Truong with a reasonable explanation of the basis in the Policy, 

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in relation to the facts or applicable law, for its offer of a compromise settlement of the 

claim, constitutes an unfair method of competition and un unfair and deceptive act or 

practice in the business of insurance. TEX. INS. CODE §541.060(3).

36. Insurance Company’s unfair settlement practice, as described above, of 

failing within a reasonable time to affirm or deny coverage of the claim to Truong, or to 

submit a reservation of rights to Truong, constitutes an unfair method of competition and 

an unfair and deceptive act or practice in the business of insurance. TEX. INS. CODE

§541.060(4).

37. Insurance Company’s unfair settlement practice, as described above, of 

refusing to pay Truong’s claim without conducting a reasonable investigation, constitutes

an unfair method of competition and an unfair and deceptive act or practice in the business 

of insurance. TEX. INS. CODE §541.060(7).

NONCOMPLIANCE WITH TEXAS INSURANCE CODE: 

THE PROMPT PAYMENT OF CLAIMS

38. Insurance Company’s conduct constitutes multiple violations of the Texas 

Insurance Code, Prompt Payment of Claims. All violations made under this article are 

made actionable by TEX. INS. CODE§542.060.

39. Insurance Company’s failure to acknowledge receipt of Truong’s claim, 

commence investigation of the claim, and request from Truong all items, statements, and 

forms that it reasonably believed would be required within the applicable time constraints, 

as described above, constitutes a non-prompt payment of claims and a violation of the TEX. 

INS. CODE§542.055.

40. Insurance Company’s failure to notify Truong in writing of its acceptance 

or rejection of the claim within the applicable time constraints, constitutes a non-prompt 

payment of the claim. TEX. INS. CODE§542.056.

41. Insurance Company’s delay of the payment of Truong’s claim following its 

receipt of all items, statements and forms reasonably requested and required, as described 

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above, constitutes a non-prompt payment of the claim. TEX. INS. CODE§542.058.

ACTS CONSTITUTING ACTING AS AGENT

42. In support of the causes of action set forth herein, Truong incorporates by 

reference the allegations contained in the foregoing Paragraphs 1 through 41 as if fully set 

forth verbatim.

43. Adjusters are agents of Insurance Company based on their acts during the 

handling of this claim, including inspections, adjustments, and aiding in adjusting a loss 

for or on behalf of the Insurance Company. TEX. INS. CODE§4001.051.

44. Separately, and/or in the alternative, as referenced and described above, 

Insurance Company ratified the actions and conduct of Adjusters, including the completion 

of their duties under the common and statutory law.

BREACH OF THE DUTY OF GOOD FAITH AND FAIR DEALING

45. In support of the causes of action set forth herein, Truong incorporates by 

reference the allegations contained in the foregoing Paragraphs 1 through 44 as if fully set 

forth verbatim.

46. Insurance Company’s conduct constitutes a breach of the common law duty 

of good faith and fair dealing owed to Truong in his Policy.

47. Insurance Company’s failure, as described above, to adequately and 

reasonably investigate and evaluate Truong’s claim, although at that time, Insurance 

Company knew or should have known by the exercise of reasonable diligence that its 

liability was reasonably clear, constitutes a breach of the duty of good faith and fair dealing.

KNOWLEDGE

48. In support of the causes of action set forth herein, Truong incorporates by 

reference the allegations contained in the foregoing Paragraphs 1 through 47 as if fully set 

forth verbatim.

49. All of the acts described above, together and singularly, were done 

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“knowingly” as that term is used in the Texas Insurance Code and was a producing cause 

of Truong’s damages described herein.

DAMAGES

50. In support of the causes of action set forth herein, Truong incorporates by 

reference the allegations contained in the foregoing Paragraphs 1 through 49 as if fully set 

forth verbatim.

51. Truong would show that all the acts as alleged herein, taken together or 

singularly, constitute the producing cause of the damages sustained by Truong.

52. As previously mentioned, the damages have not been properly addressed or 

repaired, causing further damages to the Property while also causing undue hardship and 

burden to Truong. These damages are a direct result of Insurance Company’s mishandling 

of Truong’s claim in violation of the laws set forth above.

53. For breach of contract, Truong is entitled to regain the benefit of their

bargain, which is the amount of their claim, together with attorneys’ fees.

54. For noncompliance with the Texas Insurance Code, Unfair Settlement 

Practices, Truong is entitled to actual damages, which includes the loss of the benefits that 

should have been paid pursuant to the Policy, mental anguish, court costs, and attorneys’ 

fees. For knowing conduct of the acts complained of, Truong is entitled to three times his 

actual damages. TEX. INS. CODE§541.152.

55. For noncompliance with the Texas Insurance Code, Prompt Payment of 

Claims, Truong is entitled to the amount of his claim, as well as the prejudgment interest, 

penalty interest pursuant to Chapter 542.060(c), cost, together with attorneys’ fees. TEX. 

INS. CODE §542.060.

56. For breach of common law duty of good faith and fair dealing, Truong 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 Insurance Company owed, exemplary damages and damages for emotional

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distress.

57. For the prosecution and collection of this claim, Truong has been compelled 

to engage the services of the attorneys whose names are subscribed to this pleading. 

Therefore, Truong is entitled to recover a sum for the reasonable and necessary services of 

Truong’s attorneys in the preparation and trial of this action, including any appeals to the 

Court of Appeals and/or the Supreme Court of Texas.

JURY DEMAND

58. Truong hereby requests that all causes of actions alleged herein be tried 

before a jury consisting of citizens residing in Jefferson County, Texas. Truong is tendering 

the appropriate jury fee.

PRAYER

WHEREFORE, PREMISES CONSIDERED, Counter-Plaintiffs, JOHNNY 

TRUONG and MY-NGOC TRUONG prays that Counter-Defendant, ATLANTIC 

CASUALTY INSURANCE COMPANY be cited to appear and answer herein, and that 

upon trial hereof, said Counter-Plaintiffs have and recover such sums as would reasonably 

and justly compensate him in accordance with the rules of law and procedure, both as to 

actual damages, treble damage under the Texas Insurance Code, all punitive and exemplary 

damages as may be found and reasonable and necessary attorneys’ fees. 

In addition, Counter-Plaintiffs request the award of attorney’s fees for the trial and 

any appeal of this case, for all costs of Court, for prejudgment and post-judgment interest 

as allowed by law, and for any other and further relief, either at law or in equity, to which 

they may show themselves to be justly entitled.

[SIGNATURE PAGE TO FOLLOW]

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Respectfully submitted,

THE BYRD LAW FIRM

______________________________

Jason M. Byrd

State Bar No. 24036303

448 Orleans

Beaumont, Texas 77701

T: 409.924.0660

F: 409.924.0035 

Jason@txbyrd.com

-ANDRAMSEY	LAW	FIRM

Michael R. Ramsey

State Bar No.16520200

Katherine D. Ramsey

State Bar No. 24070469

6280 Delaware Street, Suite C

Beaumont, Texas 77706

T: 409.202.2020

F: 409.444.2021 								

docket@byrdramsey.com

ATTORNEYS FOR DEFENDANTS

CERTIFICATE OF SERVICE

I hereby certify that on the 23th day of March, 2023, a true and correct 

copy of the foregoing document was forwarded to all known counsel of record 

pursuant to the Federal Rules of Civil Procedure.

____________________________________

JASON M. BYRD 

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