Triad Property Investments v. Ohio Security: Contract Claim Survives in Part

Triad Property Investments, LLC filed a lawsuit against Ohio Security Insurance Company in the United States District Court for the Middle District of North Carolina after the insurer denied two separate property damage claims. The dispute arose from storm-related damage to a commercial property in Greensboro, North Carolina. The opinion reviewed the insurance policies, the inspections performed by the insurer, and the legal sufficiency of the claims asserted in the complaint.

The 2019 Storm and Initial Insurance Claim

On September 1, 2019, a hailstorm occurred in Greensboro, North Carolina and allegedly caused damage to Triad Property Investments, LLC’s building located at 106 College Road. The structure included a roof constructed with an ethylene propylene diene monomer membrane used on low-slope commercial roofs.

At the time of the storm, the property was insured under a policy issued by Ohio Security Insurance Company that included coverage for wind and hail damage. In February 2020, Triad submitted an insurance claim requesting payment for damage it attributed to the 2019 storm.

Ohio Security conducted an initial inspection of the property on February 27, 2020. Representatives of Triad and its contractor attended the inspection and identified areas of concern on the roof. The insurer then arranged for a second inspection performed by an engineer from Donan Engineering. The engineer evaluated the roof membrane, examined surrounding structures for evidence of hail impact, and reviewed historical weather data relevant to the alleged storm damage.

After completing the inspection, the engineer prepared a report describing the condition of the roof. The report concluded that several observed issues were consistent with aging or installation problems rather than hail or wind damage. Based on the report, Ohio Security denied the claim submitted for the 2019 storm.

Insurance Coverage for the 2023 Storm

On March 26, 2023, Triad entered into a new insurance policy with Ohio Security that again provided coverage for wind and hail damage to the property. On August 15, 2023, another hailstorm occurred in the Greensboro area. Triad later alleged that this storm caused water leaks in the roof of the building.

Triad submitted a second insurance claim on December 6, 2023 seeking payment for damage it attributed to the 2023 storm. Ohio Security retained the same engineer who had inspected the property following the earlier claim. The engineer performed another inspection and prepared a report evaluating the cause of the roof damage.

The inspection report referenced several issues that had been previously identified during the earlier investigation. According to the report, the roof displayed signs of faulty installation and deterioration. The insurer also determined that water had entered the building through openings around the parapet wall where the membrane had been improperly installed.

Ohio Security concluded that the damage fell within policy exclusions addressing deterioration, wear and tear, and inadequate design or workmanship. The insurer denied the 2023 claim based on these exclusions.

Filing of the Lawsuit

On February 25, 2025, Triad Property Investments, LLC filed a lawsuit in the Superior Court of Guilford County, North Carolina challenging the insurer’s denial of coverage. The complaint asserted multiple causes of action against Ohio Security Insurance Company including breach of contract and other claims connected to the denial of coverage.

Ohio Security removed the case to federal court and filed a motion to dismiss most of the claims. The insurer requested dismissal of several claims and partial dismissal of the breach of contract claim to the extent it relied on the earlier 2019 storm.

Review of the Claims

When evaluating a motion to dismiss, federal courts accept the factual allegations in the complaint as true and draw reasonable inferences in favor of the party bringing the lawsuit. The court examined the complaint together with documents referenced in the pleadings and considered integral to the claims.

The opinion reviewed the legal theories asserted by Triad Property Investments. Several of the claims alleged violations of North Carolina law related to unfair trade practices and other extra-contractual conduct. The court examined whether the complaint included sufficient factual allegations to support those claims.

The court determined that the allegations did not include facts showing conduct that could support several of the statutory claims. The opinion also reviewed allegations connected to the earlier claim denial and determined that some of those allegations were untimely under the policy’s suit limitation provisions.

Court’s Decision

After reviewing the complaint and the legal standards governing motions to dismiss, the court granted Ohio Security Insurance Company’s motion to dismiss most of the claims asserted by Triad Property Investments.

The ruling dismissed several claims with prejudice. The breach of contract claim remained only to the extent it related to damage allegedly caused by the 2023 storm. Any portion of the claim based on the 2019 storm was dismissed.

Contract Dispute Representation

Contract disagreements can arise when businesses interpret insurance policies, service agreements, or other contracts differently. If your business is involved in a disagreement over contractual obligations, contact our team at Whitcomb Selinsky PC handles matters involving business contract disputes and related litigation.