Paul and Sylvaia Minor v. USAA

Jackson, Mississippi insurance law lawyers represented Plaintiffs who sued Defendant on bad faith breach of contract theories.





¶ 1. Paul and Sylvia Minor's home was destroyed by Hurricane Katrina on August 29, 2005. The Minors had a homeowner's insurance policy with United Services Automobile Association (USAA). The policy provided coverage limits for: house–$1,028,000, boathouse and shed–$102,800; guest cottage–$108,000; detached carport–$41,000; personal property–$771,000; and jewelry, watches, furs, and silverware–$4,000. The policy also included a two-percent named-storm deductible and covered damage caused by wind but excluded damage caused by storm surge or flood.



¶ 2. The Minors reported their loss to USAA in January 2006. USAA assigned adjusters to inspect the property and hired an independent engineering firm to inspect the structure to determine the extent of damage as a result of Hurricane Katrina's storm surge or winds. USAA issued payments for the damage that it concluded was caused by wind and did not pay for damage it determined was caused by storm surge or flood.



¶ 3. The Minors were not satisfied with USAA's payments and claimed that they suffered a total loss caused by wind. The Minors demanded USAA pay the policy limits.



¶ 4. On August 14, 2008, the Minors filed a complaint in the Circuit Court of Jackson County. The complaint asked for "monetary damages for all losses incurred," and punitive and extracontractual damages due to USAA's bad-faith refusal to pay their claim for benefits under the homeowner's policy.



¶ 5. On August 9, 2013, USAA served a motion for partial summary judgment as to the Minors' claims for punitive and extracontractual damages. The circuit court agreed and granted the motion.



¶ 6. The case then went to trial on all other claims. A jury returned a verdict, on September 20, 2013, in the amount of $1,547,293.37. After the posttrial motions were denied, the Minors filed this appeal.

Plaintiffs' verdict for $10 million.