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Last Post 06/07/2010 11:30 AM by  Ray Hall
Texas Lawsuits-21Century Hurricane Losses-The following Years
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Ray Hall
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04/29/2010 1:14 PM

    I don,t think many commercial Ike Claims ended up in the TV lawyers office, but far too many "so called paid and settled" HO losses did.

    I remember about 8 years ago State Farm, Allstate and possibly more had the "table top" settlement program designed to stop many of the reopens and long tail clean up. It seemed to work and was in force for several years. I do not know, but 04 and 05 may have changed this practice. I do know 05 Katrina MS. losses on the beach changed the wavewash losses to revert back to 1960 practices.

    I have worked many hurricanes since 1957 and I have never seen whats going on in 4 Texas Counties. The first notice of a reopen is suit papers. No attempt to settle, before. No option for either party to demand formal appraisal before suit is filed. The courts will not insist that all these cases go to "Formal Appraisal" before mediation and a lot of discovery. The intention is to never go to trial. The intent is to blackmail the carriers for a very large settlement to drop the suit. No jury would ever award the first demand settlement of $200,000 on a $1,000 to $15,000. adjusters first estimate average amount from low to high.

    It,s the fear of deceptive trade practice and unfair claims practice- treble damages with 18% interest per annum.

    The Texas Lawyers have shown the other states "how its done". The insurance carriers, vendors & persons with a license are entering the 21st Century of Hurricane loss adjustments (not flood-federal court) in state court. THE COURTS MUST ENFORCE the Duties After Loss and send these reopen files to Appraisal after suit is filed and before mediation.(Tx. courts have this demand under advisement since spring of 2009)

    The only thing in the plaintiffs file is an inflated estimate, and a copy of the adjusters file. The adjusters file is repleat with notes, errors, very poor instructions, broken promises, spelling and poor english, emails back and forth, supevisor instructions, changed estimates, declined coverage , unit prices lowered by examiners, not enough detail on the operations, no O & P. etc. etc.Please read the TX. laws for DPT & Unfair Claims practice, because, you will commit several of these in each roof and interior damage hurricane loss you work in TX.
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    brighton
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    04/29/2010 2:44 PM
    Ray,

    Excellent piece. You may as well say that it is now going to be the standard in the gulf states. Chip Merlin out of Florida is one of the premiere wind storm and sinkhole plaintiff attorneys in the U.S. He puts on seminars for other attorneys and knows his stuff. For those who do not know what Ray is talking about in his last paragraph, you will soon learn to wish you had paid attention when you get deposed, testifiy on the stand or find out that firms do not want you because of poor work product.
    Rocke Baker
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    Ol' Ghost
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    04/29/2010 4:43 PM
    Ray, do these land sharks see non-CAT losses as a profit center? Could not the same logic be applied to burst washing machine hoses, grease fires, and vehicle damaged mail boxes?

    Ol' Ghost
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    Ray Hall
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    04/29/2010 4:44 PM

    The Moysten firm who have over 7,000 and going for 8,000 lawsuits filed in 4 Tx. counties and the Merlin firm in Tampa could be the co/authors of "The Book" for all Gulf States attorneys. I was told that the Moysten Firm took one case to trial in hurricane Rita and used black mail on the rest. I think Ike may be a goose egg for a jury trail as the carriers are running from justice and lawyers on both sides are getting rich.

    Just imagine if 25% of all hurricane losses get into suit status on the next "big one". With more lawyers chasing the cases with TV adds before, during and after the storm troopers are in town. It would take the 23rd  century to try all the cases.... not just 150 years.
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    Ol' Ghost
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    04/29/2010 5:55 PM

    Ray, that sounds like one whole lot of money and job security for the team needed by the lawyers to put these blackmail losses together. Clerical, field people for estimating, someone to get the donuts and keep the coffee pot full. Is that what you're seeing?

    Ol' Ghost
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    Ray Hall
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    04/29/2010 7:37 PM

    I don,t think they need very much staff. I do not know one person who is working for that side. Most would keep it very quite. Ryan has posted about this at least 2 times, lets ask him. All of this is under the radar, I am the biggest mouth about this blackmail. It,s legal just sleezy.

    I was at a law seminar on April 1, 2010 and this one defense firm is doing 6-8 mediations five days a week with one plaintiff firm and we have about 15 law firms doing insurance defense in Houston do the math its about 105 mediations per day  for two lawyers and one adjuster and I am sure ever firm would send 5 lawyers per day and the cycle repeats ever 5 to 6 weeks.

     
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    Ol' Ghost
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    04/29/2010 7:50 PM
    Yes, I know it's sleazy. And sad to say, in this brave new world, sleaze is becoming a norm while we all become desensitized to it's many forms. Business, religion, government, cultural fads; when one watches old movies or talks with the elderly whose memories remain intact, the differences twixt then and now tend to smack one up side the head. I read a 'Popular Mechanics' magazine from July 1964 a few days ago. In comparing it with todays magazines and media, it makes me long for a time machine to whisk us all wayback.

    But, I am drifting way off topic. Please pardon my ramblings.

    I would be curious to learn more of this new phenomena.

    Ol' Ghost
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    Ray Hall
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    04/29/2010 8:08 PM

    Call me
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    Ray Hall
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    06/07/2010 11:25 AM
    The Tx. supreme court had a mandamus writ filid by a SMALL carrier (not a giant Homeowner Carrier) ??? who are settling 20 mediation cases per day with one of the TV law firms. Thats correct one lawyer for the plaintiff and 4 or 5  defense lawyers. Lets see the average mediation settlement is over $125,000.00 and the average defense cost is %30,00.00. Thats $155,000. each x 10,000 law suits I think thats 1.55 billion that will have to be added to Ike loss ratio, do you think the carriers will raise the rates in TX. We  know that answer. How many of us roof thumpers could have stopped , just one lawsuit be doing a better job? Or is this the real question ? Do the carriers make more profit if they could pass a 5% underwriting profit on this new money that they can pass on to the public?   Hmm.
     
    Oh the TX. supreme court said in a Harris County case: If the first notice is the law suit papers of an unhappy insured, the carrier can demand "Appraisal in 6 days . But this only stops the court ordered mediation (blackmail), but does not dismiss the allegations of DPT and unfair claims practice.
     
    Seems to me if these big insurance carriers want fair play they would work on the TX. law to get better adjusters, or get the legal definition of DPT and unfair claims practice changed, or do they really want the status que ?   2 hums
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    Ray Hall
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    06/07/2010 11:30 AM
    Posted By Ray Hall on 07 Jun 2010 11:25 AM
    The Tx. supreme court had a mandamus writ filid by a SMALL carrier (not a giant Homeowner Carrier) ??? The large carriers are settling 20 mediation cases per day with one of the TV law firms. Thats correct one lawyer for the plaintiff and 4 or 5  defense lawyers. Lets see the average mediation settlement is over $125,000.00 and the average defense cost is %30,00.00. Thats $155,000. each x 10,000 law suits I think thats 1.55 billion that will have to be added to Ike loss ratio, do you think the carriers will raise the rates in TX. We  know that answer. How many of us roof thumpers could have stopped , just one lawsuit be doing a better job? Or is this the real question ? Do the carriers make more profit if they could pass a 5% underwriting profit on this new money that they can pass on to the public?   Hmm.
     
    Oh the TX. supreme court said in a Harris County case: If the first notice is the law suit papers of an unhappy insured, the carrier can demand "Appraisal in 6 days . But this only stops the court ordered mediation (blackmail), but does not dismiss the allegations of DPT and unfair claims practice.
     
    Seems to me if these big insurance carriers want fair play they would work on the TX. law to get better adjusters, or get the legal definition of DPT and unfair claims practice changed, or do they really want the status que ?   2 hums
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