However, an adjuster for General Star, which insured the store under a commercial property policy, found these estimates “totally off base.” An engineer hired by the insurer determined that the roof damage was unrelated to the collision.
Policy Limitations and Legal Dispute
General Star subsequently tendered over $33,000 for damage caused by the crash. The property policy did not cover pre-existing wear and tear or damage caused by windstorms or hail, court documents stated.
Due to an ongoing dispute over the damage costs, Smiley filed suit against the insurer in Texas state court in March 2021. The complaint, which was later removed to federal court, included claims for breach of contract, bad faith, violations of the Texas Deceptive Trade Practices Act and Texas Insurance Code, fraud, and conspiracy to commit illegal acts.
5th Circuit General Star Win Affirmation: Court’s Decision
U.S. District Judge Jeffrey V. Brown had previously dismissed Smiley’s fraud and DPTA claims and granted summary judgment to General Star on the store’s remaining claims in October 2022. Judge Brown ruled that Gadrow’s affidavit and report were insufficient to establish a genuine dispute of material fact regarding whether the vehicle collision caused the roof damage.
