ALLSTATE UNIT MUST PAY $3.8 MILLION

A Denton County, Texas, jury ordered Allstate Texas Lloyds to pay actual and exemplary damages of more than $3.8 million in a suit alleging the unit did not pay claims for damage to a home caused by plumbing leaks. According to Stephen W. Boyd and Robert N. Grisham, II, attorneys for plaintiffs Robert and Debbie Mason, the couple purchased their home in late 1992 and it began cracking apart in late 1998. Leaks were found in the plumbing lines beneath the foundation and after the leaks were repaired, the damages soon stopped. After the claim was submitted to Allstate, an engineer hired by Allstate concluded the leaks caused no damage to the house. The Masons disagreed and filed suit. The jury found that plumbing leaks resulted in damage to the home and held Allstate liable for breach of contract. The jury also found Allstate breached Texas’ common-law duty of good faith and fair dealing; knowingly engaged in unfair or deceptive acts or practices; knowingly engaged in an unconscionable action or course of action; and acted with malice. The jury ordered Allstate to pay $163,159.76 for repair costs to the Mason’s home, additional damages in the amount of $3.5 million, and attorney’s fees.