Louisiana Record

Friday, December 13, 2019

Mortgage servicer sued for withholding over $12K from insurance payments

By Kyle Barnett | Aug 22, 2013

Breach of contract

GRETNA – A Metairie couple is suing a mortgage servicer for allegedly withholding funds they received to repair their home following water damage in 2010 and damage from Hurricane Isaac last year.

Richard W. and Kathryn K. Martinez filed suit against Ocwen Loan Servicing LLC and Bank of New York as trustee for the certificate holder CWABS Inc. asset-backed certificates Series 2004-J1. in the 24th Judicial District Court on June 25.

The Martinezes claim that under their mortgage service agreement with Ocwen Loan Servicing an insurer should pay for damages that occur at their home located at 4729 N. Turnbull Drive in Metairie under an extended coverage contract. The plaintiffs allege that the defendants received $36,242.11 for damages to their home incurred in a water leakage incident in 2010. In addition, the plaintiffs allege they are owed monies for damage their home received during Hurricane Isaac in 2012.

The couple asserts that they have only received $23,895.30 of the money paid to the defendants for the 2010 incident and are still owed $12,346.81.

For the Hurricane Isaac damage the Martinezes allege they were owed $37,297.06, but payments were made to them for a total of $12,432.35.

The plaintiffs allege that the 24th Judicial District Court already ruled in their favor on the matter in the amount of $23,819.57 and the defendants were to pay them, but when the payments came through they were only in the amount of and $12,536.16 had been subtracted for unknown fees.

The defendant is accused of bad faith and breach of contract.

Damages in the amount of $12,346.81 are sought plus attorney’s fees.

Richard W. Martinez is representing himself in the case.

The case has been assigned to Division F Judge Michael P. Mentz.

Case no. 728-279.

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