TEXAS PLAINTIFFS LAWYERS CALLED OUT FOR FILING QUESTIONABLE STORM CLAIMS IN NEW JERSEY

On Thursday, November 13th, a New Jersey federal court issued a show-cause order as to the evidentiary basis for a bad faith insurance suit based on the insured’s Hurricane Sandy claim brought by attorneys Bill Voss and Scott Hunziker from Houston. Lighthouse Point Marina & Yacht Club v. International Marine Underwriters, Civ. No. 14-2974, U.S. District Court, District of New Jersey (slip opinion). Specifically, the court ordered Plaintiff’s counsel to provide the evidentiary basis for the allegation that the Defendant “fail[ed] to pay Plaintiff’s benefits relating [to] the cost to properly repair the Property, as well as, for all alternate living expenses and content-related losses.” The court also dismissed with prejudice the insured’s suit seeking bad faith and other damages arising from the Sandy claim stating that it had concerns that the suit was brought in “bad faith.” U.S. District Court Judge William Walls gave Plaintiff’s counsel until December 15th to respond and instructed Defense counsel for the carrier to submit evidence of its attorney fees incurred in defending the case prior to December 22nd.