Federal Judge Allows Bad Faith Claim To Proceed In Hurricane Ike Coverage Dispute

Federal Judge Allows Bad Faith Claim To Proceed In Hurricane Ike Coverage Dispute

HOUSTON - A Texas federal judge on May 7 found that insureds have sufficiently pleaded a claim for breach of the duty of good faith and fair dealing against their homeowners insurer, allowing the bad faith claim, as well as two claims under the Texas Insurance Code, to proceed against the insurer in a coverage dispute prompted by Hurricane Ike damage (Sher Khan, et al., Plaintiffs, v. Allstate Fire and Casualty Insurance Company, et al.,  No. H-11-2693, S.D. Texas, Houston Div.; 2012 U.S. Dist. LEXIS 63842).

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