Texas court reopens insurance dispute after landslide destroys two homeowners' backyards

NewsWorld NewsUS NewsTwo Texas homeowners saw their backyards collapse down an 80-foot creek slope, leaving houses unsafe; after insurers refused payment, an appeals court reopened the fight over whether landslides are covered Two Texas homeowners saw their backyards collapse down an 80-foot creek slope, leaving houses unsafe; after insurers refused payment, an appeals court reopened the fight over whether landslides are covered A legal dispute over home insurance coverage in Travis County has been sent back to court after a state appeals court ruled that an insurance company must provide evidence about what caused a major backyard landslide before refusing to pay a claim under its standard policy exclusions.

According to legal documents published by Justia Law, the Texas Third Court of Appeal in Austin overturned a trial court's summary judgment in _Privilege Underwriters Reciprocal Exchange v. Michael MacDougall and William Heyer_.

The appeals court issued its ruling on 30 October. The decision sends insurer PURE back to court to determine whether human activity helped cause two residential backyards to collapse down an 80-foot slope. The dispute began when the rear sections of neighbouring properties owned by Michael MacDougall and the estate of the late George S.

Heyer Jr. suddenly collapsed. Large sections of land broke away and slid down a steep slope towards a local creek. The damage left both homes unsafe, with the buildings sitting dangerously close to the edge of the cliff.Insurer denied claims under standard earth movement exclusion After the slope collapsed, MacDougall and the Heyer estate filed insurance claims under their high-end homeowners policies with Privilege Underwriters Reciprocal Exchange (PURE).

They asked the insurer to cover structural repairs, work to stabilise the land and other related losses. PURE rejected the claims, pointing to the policy's standard exclusion for earth movement and landslides. The insurer argued that natural movement of the land and damage to the slope caused the collapse.

It said the policy clearly excluded this type of damage, even if other factors had also played a role. The homeowners then sued PURE for breach of contract and for failing to pay their claims on time under the Texas Insurance Code.

The Travis County 250th District Court granted summary judgment in favour of the homeowners on the question of liability, making the insurer responsible for the loss. PURE later challenged that decision in the appeals court.Appellate court defines scope of landslide exclusions The Third Court of Appeal overturned the district court's summary judgment ruling that had held PURE responsible for the loss.

It also reversed a related award of statutory interest under the Texas Prompt Payment of Claims Act. The appeals court sent the case back to the 250th District Court of Travis County for further hearings and the presentation of more evidence.

The lower court will now examine the facts to establish the exact cause of the landslide. You use AI every day. Now get your AI Quotient. Take the AIQ test. At TOI World Desk, our dedicated team of seasoned journalists and passionate writers tirelessly sifts through the vast tapestry of global events to bring you the latest news and diverse perspectives round the clock.

With an unwavering commitment to accuracy, depth, and timeliness, we strive to keep you informed about the ever-evolving world, delivering a nuanced understanding of international affairs to our readers. Join us on a journey across continents as we unravel the stories that shape our interconnected world.

WATCH: James Talarico Wages War On Musk, Ken Paxton & ‘Corrupt’ Texas Billionaires | MIDTERMS 2026 ON CAM: Abdul El-Sayed Uses Mike Rogers’ Birthday Gift Against Trump; ‘Maybe He Should Go To Dubai’ ‘Tim Walz Turned A Blind Eye…’: Kash Patel & Scott Bessent Expose $41 Million Minnesota Fraud ‘OUST NETANYAHU’ Plan Leaked: Eisenkot Unites Opposition, Bibi’s Party Trying To Poach Rivals?

‘Stupid Question’: Trump Snaps At NYT Reporter Linking Fresh Iran Attacks To Midterms Loss | WATCH ‘Forget Sharia Law, I Love Shawarma’: Abdul El-Sayed Flips Trump’s Attack Into Hilarious Joke Erdogan Warns Russia & Ukraine, Slams Black Sea Ship Attacks Ukraine War | Watch Germany's Streets Descend Into Chaos As Protesters Loot Shops And Attack Police MACRON'S FACE SMASHED!

French Protests Take Wild Turn; Blunt Warning Issued To President | Watch UK In Iran's Crosshairs; Tehran Targets MI6, Royal Navy & RAF In Dramatic New Escalation