Texas Court Asked To Decide If Insurer Owes Delay Damages For Converted Check

Mealey's (April 25, 2016, 9:01 AM EDT) -- HOUSTON — An insured on Jan. 19 told a Texas state appeals court that it is due prompt-payment damages from an insurer whose check was converted by the insured’s attorney (Gusma Properties, L.P., et al. v. The Travelers Lloyds Insurance Company, No. 14-00892-CV, Texas App., 14th Dist.).

(Gusma brief available. Document #50-160428-001B.)

Gusma Properties L.P. owned five buildings in Texas that were damaged in 2008 by Hurricane Ike. Gusma submitted a claim to its insurer, Travelers Lloyds Insurance Co.

Gusma and Travelers could not agree on...
To view the full article, register now.