Texas’ Heard museum accuses insurer of underpaying storm damage claim
The case, removed to federal court in July, is now paused while an appraisal sets the amount of the loss.
Law and Crime
The Heard Natural Science Museum and Wildlife Sanctuary accused its property insurer of hiring “biased engineers” and conducting an “outcome-oriented investigation” to avoid paying the full cost of hail and wind damage to the McKinney, Texas, institution’s buildings, court documents show.
The museum sued Philadelphia Indemnity Insurance Company in Collin County district court in May, and the insurer removed the case to the U.S. District Court for the Eastern District of Texas on July 30, documents show.
A federal judge paused the case on September 3. District Judge Jeremy D. Kernodle approved a motion agreed to by the parties to halt proceedings while an appraisal is completed.
Paid subscribers can read the full lawsuit.
Court Docs: Heard Natural Science Museum v. Philadelphia Indemnity Insurance Company
Court documents in the Heard Natural Science Museum’s insurance suit against Philadelphia Indemnity.
Adam Schrader
The dispute centers on a policy the museum held from October 1, 2022, to October 1, 2023. During that period, a hail and windstorm swept through Collin County and damaged buildings on the museum’s property.
After the Heard filed a claim, Philadelphia Indemnity inspected the property around January 4, 2024. The museum alleged the inspection was inadequate and that the insurer hired engineers to classify the damage as “wear and tear, improper installation” and other causes excluded from coverage.
The engineers’ report was written “with a pretext to deny the majority of the damages at the Property,” the lawsuit said.
The insurer issued a first payment around May 30, 2024, but never paid the full claim, the museum said. Documents reviewed by Urgent Matter do not specify the claim or payment amount.
The lawsuit includes claims for breach of contract, violations of the Texas Insurance Code's prompt-payment and unfair-settlement provisions, violations of the Texas Deceptive Trade Practices Act, and a breach of the duty of good faith and fair dealing.
The museum is seeking damages, statutory interest and attorney's fees.
The museum has named three properties in the suit — One Nature Place and 2000 Nature Place in McKinney, and 997 Sharon in Fairview — all located in Collin County.
Philadelphia Indemnity answered the lawsuit on August 31.
The documents show that Axiom Public Adjusting, the museum's public adjuster, is an interested party in the case.
Follow along with other legal disputes at Urgent Matter’s lawsuit tracker.
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