Gravely & Pearson, L.L.P. wins $1.4 million Verdict in Insurance Breach of Contract and Bad Faith Case

May 7, 2012-Houston Texas. Gravely & Pearson, L.L.P., the policyholders’ law firm, won a verdict last week for its small-business client in Houston, Harris County, Texas. After a week-long trial, the jury found United National Insurance Company liable to the policyholder for $1.4 million. The suit arose out of damages to a seven story office building as a result of hurricane Ike which struck theTexascoast in September 2008. United National had paid out approximately $2.4 million to its insured for the loss during the claims process. However, the jury found that the insurance company breached the contract by failing to properly investigate and underpaying the claim. The jury also determined that the insurance company engaged in bad faith during the claim and assessed a penalty against them for their conduct.

Shannon Loyd, partner at Gravely & Pearson, L.L.P., said that after application of penalties under the Prompt Payment of Claims Act, the judgment should total $1.6 million. This verdict is the second Hurricane Ike recovery for Gravely & Pearson, L.L.P., coming on the heels of a $4 million verdict on behalf of an apartment complex owner against Lexington Insurance, a unit of American International Group.

About Gravely & Pearson, L.L.P.

Gravely & Pearson, L.L.P. represents insurance policyholders in disputes arising out of the bad faith actions and poor claims handling by their insurance companies.  According to the Texas Lawyer, Gravely & Pearson L.L.P. was responsible for the largest insurance verdict in the state ofTexasin 2011.  Gravely & Pearson, L.L.P. lawyers are consistently recognized for their work at both the trial and appellate level.