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Gulf Underwriters Fighting $1.2 Million Claim Over Texas Remediation
by Mold Courtroom News
Gulf Underwriters filed the coverage suit on Nov. 18 against Richard and Ivonne Cano of McAllen, Texas,, plaintiff homeowners in the underlying suit, and against Gordian Environmental of Pharr, Texas. The Canos sued Gordian in Hidalgo County, Texas, alleging that Gordian failed to complete a mold remediation and construction contract (Cano v. Gordian Environmental, No. CL-43,388-A, County Court at Law No. 1, Hidalgo Cty., Texas).
Gulf maintains that it had no obligation to defend or indemnify Gordian and asserts, in part, that 'Gordian failed to defend the underlying suit,' which resulted in a default judgment of $1,200,051.48 for the Canos on Sept. 27. That judgment included treble damages and attorney fees.
The Canos concede in their two-page answer that a default judgment was entered when Gordian did not appear for trial, but say the company 'did hire counsel to defend it throughout the course of the litigation.'
Besides raising the issue of whether its insured adequately defended the underlying lawsuit as required by a self-insured retention endorsement, Gulf also argues that bodily injury, property damage, punitive damages and other exclusions apply to bar coverage.
Richard P. Colquitt of Fulbright & Jaworski in Houston represents Gulf Underwriters.
Reynaldo Ortiz and John A. Millin IV of the Law Office of Reynaldo Ortiz in McAllen, Texas, represent Richard and Ivonne Cano.
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