More Resources

Home fire.(Whispers)


The clash between Aaron Jones and his insurance carrier over coverage in the May 2008 arson at his Chenal Circle home just got hotter.

Travelers Insurance Co. has filed a counterclaim against Jones in an attempt to collect the $1.2 million it paid to cover the mortgage company's loss of his 5,757-SF mansion. (Travelers has a clause in its policy that requires it to pay the mortgage holder regardless of the actions of the policy holder.)

Travelers also wants a judgment against Jones for the court costs and attorney fees it is ringing up because of the lawsuit Jones filed against it.

Only a few months ago, Jones sued Travelers because it didn't pay a $1.1 million claim Jones made for personal property lost in the fire.

Jones, an attorney and real estate developer, told Travelers he was at his pad on the evening of May 30 when thugs broke in, bound him with duct tape and set the place on fire.

But Travelers refused to pay the claim. It said it believed that Jones "intentionally set the fire and staged the home invasion" and that he "had a financial motive to set the fire," according to the court documents filed in the case.

Jones sued Travelers for breach of contract and bad faith for not paying the claim.

Travelers said in its answer that it shouldn't have to pay the claim because Jones allegedly caused the loss.

Jones' attorney, Kevin O'Dwyer of Little Rock, declined to comment on Travelers' allegations. But in Jones' response, he denied the company's allegations.

COPYRIGHT 2009 Journal Publishing, Inc. Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.

Copyright 2009 Gale, Cengage Learning. All rights reserved. Gale Group is a Thomson Corporation Company.

NOTE: All illustrations and photos have been removed from this article.


Marketplace

Learn how to distribute a press release

Try our new online printing. theupsstore.com/print
Today on Entrepreneur

Sign Up for the Latest in:
Online Business
Franchise News
Starting a Business
Sales & Marketing
Growing a Business

E-mail*

Zip Code*