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Pan Am Equities, Inc. v. Lexington Ins. Co.

United States District Court for the Southern District of Texas, Houston Division

May 2, 2019, Decided; May 2, 2019, Filed, Entered

CIVIL ACTION NO. H-18-2937

Opinion

MEMORANDUM AND ORDER

This insurance case is before the Court on the Motion for Summary Judgment [Doc. # 28] filed by Defendant Lexington Insurance Company ("Lexington"), to which Plaintiff Pan Am Equities, Inc. ("Pan Am") filed an Opposition [Doc. # 29]. Pan Am also filed a Motion for Partial Summary Judgment [Doc. # 30]. Lexington filed a consolidated reply in support of its own motion and in opposition to Pan Am's motion [Doc. # 33], and Pan Am filed a Reply [Doc. # 35] in support of its motion.

The Court has carefully reviewed the parties' briefing and the relevant insurance policy. Based on that review, and the [*2]  application of governing legal authorities, the Court grants Lexington's Motion for Summary Judgment and denies Pan Am's Motion for Partial Summary Judgment.

I. BACKGROUND

Lexington issued Commercial Property Policy Number 025031662 (the "Policy") to Pan Am for the period June 30, 2016 through June 30, 2018. The Policy covered Pam Am's commercial properties in Houston, Texas, including an apartment building at 777 Preston Street and a commercial parking garage and retail building at 930 Main Street (collectively, the "Properties"). The Properties suffered more than $6.7 million in flood damage during Hurricane Harvey in August 2017. Pan Am filed a timely claim under the Policy for the damage to the Properties.

The Policy contains a section entitled "Deductibles." See Policy, Exh. B to Lexington's Motion, Declarations, § 10 (Bates No. 0011). The Deductibles section provides that if "two or more deductibles provided in this Policy apply to a single occurrence, the total to be deducted will not exceed the largest deductible applicable, unless otherwise provided." See id., § 10.B. The general deductible under the Policy is $100,000.00. See id., § 10(A).

One exception to the general deductible amount is for [*3]  "any adjusted loss due to Flood." See id., § 10(C). The Flood Deductible provides a $1,000,000.00 per location deductible for "locations wholly or partially within Special Flood Hazard Areas (SFHA), areas of 100-year flooding . . .." See id., § 10(C)(1).

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2019 U.S. Dist. LEXIS 83910 *; 2019 WL 2115173

PAN AM EQUITIES, INC., Plaintiff, v. LEXINGTON INSURANCE CO., Defendant.

Subsequent History: Affirmed by Pan Am Equities v. Lexington Ins. Co., 2020 U.S. App. LEXIS 16648 (5th Cir. Tex., May 26, 2020)

CORE TERMS

Storm, Windstorm, Flood, hurricane, wind, unambiguous, ambiguous, perils, extrinsic, Partial