League City homeowners insured by the Texas Windstorm Insurance Association may be among thousands of Galveston County policyholders affected by an alleged scheme to secretly reduce Hurricane Beryl damage estimates, according to a federal class-action lawsuit filed Thursday, Aug. 13.
The complaint, filed in U.S. District Court for the Southern District of Texas, invokes the federal Racketeer Influenced and Corrupt Organizations Act. Attorneys for three Galveston-area homeowners allege a supervisor at an outside adjusting firm drastically cut field-inspected repair estimates without the original adjuster's knowledge, and that TWIA approved the reduced figures and paid claims based on them. League City ZIP code 77573 fall within TWIA's 14-county coastal coverage territory.
One homeowner's estimate cut by 66%
The three named plaintiffs are Jamaica Beach and Galveston homeowners Ernestine Bell, Alicia Stuart and David Mohun. According to the complaint as reported by Click2Houston, the reductions were steep:
- Stuart's estimate dropped from roughly $90,948 to $30,817, a 66% cut.
- Mohun's fell from about $55,406 to $31,013, a 44% cut.
- Bell's went from approximately $22,464 to $10,389, a 54% cut.
The lawsuit alleges field adjuster Lee Olivares inspected the properties and submitted estimates through Xactimate software. Leading Edge Claims Service supervisor David R. J. DeVilbiss then allegedly altered those estimates from Ohio without contacting Olivares or the homeowners, the Galveston County Daily News reported. The final documents still listed Olivares as the estimator.
Olivares has provided an affidavit stating he did not know about or approve the changes. He later reviewed 29 of his own claims and found 23 had been revised downward.
Alleged family ties and TWIA inaction
The lawsuit also alleges David DeVilbiss is the brother of Charles Edward "Chip" DeVilbiss, TWIA's senior claims manager. Shelly DeVilbiss, Chip DeVilbiss's sister-in-law, is also named as a defendant accused of adjusting claims for the association.
Attorney Shaun Hodge of the Hodge Law Firm said at a Tuesday, Aug. 18 press conference that he brought the alleged alterations to TWIA's senior management in the summer of 2025. The complaint states management did not audit or report the conduct.
"This is not a one-off," Hodge said. "We believe this was something that was carried out across all the claims filed after Hurricane Beryl."
Potential scope reaches tens of thousands
The three named plaintiffs may represent a fraction of those affected. Hodge and co-counsel Craig Eiland of Eiland & Bonnin estimate 20,000 to 25,000 TWIA policyholders could have been harmed. TWIA has reported paying approximately $336 million on about 34,000 Beryl claims, according to figures cited in the complaint. The storm's ultimate loss estimate reached $455 million by Sept. 30, 2024, fully depleting TWIA's $451 million Catastrophe Reserve Trust Fund.
The allegations have not been proven. The plaintiffs seek actual damages, treble damages, costs and attorney's fees under RICO. A federal judge has not certified the case as a class action.
TWIA declines to comment
TWIA spokesperson Aaron Taylor said in a statement that it is the association's practice not to comment on active or potential litigation and that its claim adjusting procedures comply with applicable Texas and federal laws. Leading Edge Claims Service did not respond to requests for comment. Hansen Scott Holdings, a successor company to Leading Edge, and holding company Ryze Claims Solutions are also named as defendants.
No hearing date has been scheduled. The attorneys are also asking state officials to investigate and amend laws to prevent similar conduct.
