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Plaintiff Storebrand Insurance Co., as subrogee of Texas Drydock, Inc. (TDI), sought indemnification from Defendant Wausau for $200,000 paid to settle a prior Longshore and Harbor Workers’ Compensation Act (LHWCA) claim. TDI, a ship repair company, was an alternate employer under Stafftek, Inc.'s workers' compensation policy serviced by Wausau. Storebrand, TDI's general liability insurer, paid $200,000 to complete a settlement after Wausau offered only $300,000 for an injured employee's claim. Storebrand then alleged Wausau breached its duty of good faith and fair dealing, and violated the Texas Deceptive Trade Practices Act (DTPA) and the Texas Insurance Code by not increasing its settlement offer. The Court ruled that Wausau, as a servicing company, could not be held liable for breach of good faith and fair dealing, and found Wausau had a reasonable basis for its $300,000 settlement offer, thus dismissing Storebrand's DTPA and Texas Insurance Code claims with prejudice. Consequently, the Court granted Wausau's motion for summary judgment and denied Storebrand's, dismissing all claims.
Storebrand Ins. Co. v. Employers Ins. of Wausau is a workers' compensation case decided in District Court, S.D. Texas. This case addresses legal issues related to compensation claims, benefits, and court rulings.
It is commonly referenced in legal research involving workers' compensation laws in District Court, S.D. Texas.
Full Decision Text1 Pages
Plaintiff Storebrand Insurance Co., as subrogee of Texas Drydock, Inc. (TDI), sought indemnification from Defendant Wausau for $200,000 paid to settle a prior Longshore and Harbor Workers’ Compensation Act (LHWCA) claim. TDI, a ship repair company, was an alternate employer under Stafftek, Inc.'s workers' compensation policy serviced by Wausau. Storebrand, TDI's general liability insurer, paid $200,000 to complete a settlement after Wausau offered only $300,000 for an injured employee's claim. Storebrand then alleged Wausau breached its duty of good faith and fair dealing, and violated the Texas Deceptive Trade Practices Act (DTPA) and the Texas Insurance Code by not increasing its settlement offer. The Court ruled that Wausau, as a servicing company, could not be held liable for breach of good faith and fair dealing, and found Wausau had a reasonable basis for its $300,000 settlement offer, thus dismissing Storebrand's DTPA and Texas Insurance Code claims with prejudice. Consequently, the Court granted Wausau's motion for summary judgment and denied Storebrand's, dismissing all claims.
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