Texas Court Reopens Foreclosed Hotel Coverage Case

Law360, New York (November 27, 2013, 7:24 PM EST) -- A Texas appeals court on Wednesday revived a Holiday Inn franchise’s suit against Association Casualty Insurance Co. for allegedly underpaying a claim for flood damage, finding the franchise hadn't divested its breach of contract claim in a foreclosure.

Peacock Hospitality Inc., which does business as Holiday Inn Express-Burnet, sued Association Casualty over the alleged underpayment of a $133,000 insurance claim for water damage to a hotel. The damage occurred after Peacock had defaulted on its loan to First National Bank Group Inc., and Association Casualty paid...
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