Mortgagor Has No Standing To Sue Mortgagee's Insurer, Texas Federal Judge Rules

Mortgagor Has No Standing To Sue Mortgagee's Insurer, Texas Federal Judge Rules

HOUSTON - A Texas federal judge ruled March 26 that because a mortgagor did not have a contractual relationship with an insurer that provided mortgage protection to its mortgagee, the mortgagor did not have standing to bring breach of contract or bad faith claims against the insurer for its handling of a claim for damages sustained from Hurricane Ike (Premium Plastics v. Seattle Specialty Insurance Services Inc., et al., No. 4:10-cv-03960, S.D. Texas; 2012 U.S. Dist. LEXIS 40784).

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