$6 million Hockley County insurance dispute tossed out of court - KCBD NewsChannel 11 Lubbock

$6 million Hockley County insurance dispute tossed out of court

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LUBBOCK, TX (KCBD) -

A federal judge tossed out the lawsuit filed by National Fire Insurance Company of Hartford versus Hockley County last week. The judge did not say who is right or wrong. Instead, the judge was "allowing the parties to proceed in the state court proceedings."

Back in December, National Fire Insurance filed a federal lawsuit, accusing Hockley County of inflating damage claims by more than $6 million. National says in court records that Hockley County made claims on hail damage for six buildings following a storm on March 19, 2011. National says the actual cause of most of the damage was not hail but faulty workmanship which was not covered under the insurance policy.

At the same time, National and Hockley County had an ongoing lawsuit in state court. Hockley County requested the federal lawsuit be tossed out. The judge agreed, saying in part, "the Court finds that any coverage dispute is clearly premature at this juncture because the appraisal process as provided for under the policy has not been completed."

The federal lawsuit is dismissed without prejudice, meaning National Fire Insurance can file the same lawsuit again later on.

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