Henderson v. United States Fidelity & Guaranty Co.

PARKER, Justice.

THE UNDERLYING ACTION

The underlying action arose out of a real estate transaction in which James and Glenda Henderson (“plaintiffs”) purchased from Clifton Hicks Builder, Inc. (“Hicks”) a residence situated in a drainage area subject to severe flooding. The evidence at trial demonstrated that before signing the contract to purchase, plaintiffs asked Hicks’ president whether there had been or would be any water problems on the lot, to which he responded “no.” In fact, the lot had flooded once during construction of the house. The jury found that Hicks had engaged in unfair and…