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Saturday, April 27, 2024

Lawsuit says Houston firm took control of insurance dispute, failed to get proper value

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NEW ORLEANS (Legal Newsline) — A Louisiana couple allege a law firm negligently negotiated an insurance dispute settlement without allowing them to ever meet with an attorney. 

Charmel Sancho and Mike Sancho filed a complaint March 21 in the U.S. District Court for the Eastern District of Louisiana against McClenny, Mosely & Associates (MMA) PLLC alleging legal malpractice and other claims. 

According to the complaint, they signed an attorney employment contract with MMA for representation in February 2022 for an insurance dispute with State National Fire Insurance over damage to their home from Hurricane Ida. They claim the agreement was never signed by an attorney with MMA and that they never met with an attorney from the firm. 

The Sanchos further claim that MMA hired an adjustor who put the replacement cost value damages at $201,435.80. They claim they were pressured into signing a settlement with the insurance companies for $47,455.66 without being able to speak to an attorney from MMA. 

The Sanchos also claim the settlement was never explained to them, that they received $34,900 and that they never signed the settlement agreement. They allege MMA negligently negotiated a settlement that was $70,145 under their $117,600 policy and failed to file a lawsuit on their behalf despite the disparity in damages. 

The Sanchos seek monetary relief, interest and all other just relief. They are represented by Erik Noland, Felix DeJean, IV, and Sherry Cannon of DeJean & Noland Law Office LLC in Baton Rouge. 

The firm faces other litigation over its handling of insurance claims, like a class action by a man who says he never agreed to have it represent him.

U.S. District Court for the Eastern District of Louisiana case number 2:23-CV-994

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