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DTPA Demand — Bil Sonic Trading Co., Inc. Page 1 of 10

John Saenz iSt Associates, PC

0 -- John Saenz, Attorney at Law

June 11.2021

Via Email: matthew.olingthehartford.com

Mathew Olin
Maxum Indemnity Company
a brand of The Hartford Global Specialty
83 Wooster Heights Rd.
Danbury, CT 06810

Re: Insured: Bil Sonic Trading Co. Inc.

Claim#: BDG-3038836-02-01-01
Policy#: BDG-3038836-02
DOL: 07/25/2020
Insured Location: 2212-2214 N. 10th St., McAllen, TX 78501

DEMAND FOR RELIEF UNDER THE TEXAS DECEPTIVE TRADE PRACTICES-

CONSUMER PROTECTION ACT SECTION 17.46(b) BUSINESS AND COMMERCE
CODE, THE TEXAS INSURANCE CODE SECTION 541.154, TEXAS INSURANCE
CODE AND PRE-NOTICE UNDER TEXAS INSURANCE CODE 542A.003

Dear Counsel(s):

As you are aware, this firm has been retained by BB Sonic Trading Co., Inc. to represent
him in the handling and prosecution of his claims against Maxum Indemnity Company (Maxum)
a brand of The Hartford Global Specialty hereinafter referred to as "Maxum" under the Texas
Deceptive Trade Practices-Consumer Protection Act (DTPA) and under the Texas Insurance
Code, section 541 and 542.

I. Background

On or about July 25, 2020, Bil Sonic Trading Co., Inc. suffered damages to his property
due to hail, rain and wind. Such losses in the form of hail, rain and wind are covered under the
insurance policy purchased by Bil Sonic Trading Co., Inc.. Bil Sonic Trading Co., Inc. timely
reported such a claim to Maxum pursuant to the terms of the insurance policy. On or about July
30, 2020, Maxum acknowledged the receipt of claim. Maxum sent adjuster, GORDON M.
SPEARS, to inspect the property. GORDON M. SPEARS estimated replacement cost property
damages to be $574.87. GORDON M. SPEARS included damages to principal areas such as the
roof and exterior. However, Maxum failed to include significant damages comprising of interior
damage to walls, ceilings, windows, doors, floors (i.e. including but not limited to hallways,

McAllen Lare do
805 Da11a8 Ave. 709 Alta Vista Dr., Unit #105
McAllen, Texas 78501 Laredo, Texas 78041
Toll Free: 1-800-619-0689 Toll Free: 1-800-619-0689
Tel: (956) 467-0111 Tel: (956) 267-5739
Fax: (956) 467-1742 Fax: (956) 267-1345
 DTPA Demand — Bil Sonic Trading Co., Inc. Page 2 of 10

entryway, office, closets etc.) and expenses associated with packing and preserving personal
items during repairs. Additionally, Maxum failed to properly inspect the roof and investigate the
origins of water penetration.
On or about August 13, 2020, Maxum determined that the cost to repair or replace the
damage resulting from the covered loss to Bil Sonic Trading Co., Inc.'s property was of $574.87
and denied his claim on the basis that it did not exceed his deductible amount. On or about
September 1, 2020, Bil Sonic Trading Co., Inc. disputed the findings of GORDON M. SPEARS.
As a result, Maxum sent a Stephens forensic engineer, David Highfield, to inspect the property.
David Highfield concluded that no wind damage or hail damage was found on the roof of the
property had. David Highfield failed to include significant damages comprising of interior
damage to walls, ceilings, windows, doors, floors (i.e. including but not limited to foyer entry,
living room, study/office, bedroom, closets etc.) and expenses associated with packing and
preserving personal items during repairs. Additionally, Maxum failed to properly inspect the
roof and investigate the origins of the water penetration. Maxum also neglected to account for
flying debris as a reason for the broken roof tiles. Bil Sonic Trading Co., Inc. did numerous
repairs to the insured property. To date, Maxum has not paid for covered damages relating to
items mentioned above not covered by Maxum.
Maxum Insurance failed to timely send a properly trained inspector and/or adjuster to
analyze the damage. As a result, Bil Sonic Trading Co., Inc.'s claim was not fully assessed.
Maxum failed to inspect and properly analyze the roof and water damage inside the property
resulting from the covered loss. Maxum attempted to effectuate the loss limited mainly to the
roof of the property while neglecting extensive visible damage to the interior of the property and
neglecting the structural exterior damage to the property.
Maxum failed to get the necessary facts and background information on the wind and
storm damage to come to its conclusion. Maxum's inspectors did not take the time to inspect all
of the damage, merely performing a cursory overview, failing to account for much of the damage
that was present, and failing to give a proper reason for excluding acknowledged damages.
Although Bil Sonic Trading Co., Inc.'s damages resulted from a covered peril, Maxum
undervalued Bil Sonic Trading Co., Inc.'s damages, omitted certain damages from the estimate,
mischaracterized damages so as to produce an outcome-oriented result and developed a claims
system that produced an outcome-oriented result. As a result, Bil Sonic Trading Co., Inc. was
underpaid for his claim.
Maxum's adjuster failed to properly estimate Bil Sonic Trading Co., Inc.'s covered
damages. In not performing a proper inspection of the property and not including the full scope
of Bil Sonic Trading Co., Inc.'s covered damages in the estimate of repair costs, Maxum did not
perform a reasonable investigation into Bil Some Trading Co., Inc.'s claim.

It is clear that there are factors in this claim that are adverse to Maxum. A jury verdict
will in all probability find in favor of our client regarding the breach of contract issue by failing
to actively provide the policyholder with material information i.e. reports, notes, photos
regarding his claim and representing to his insured findings based on an insufficient fact

McAllen Laredo
805 Dallas Ave. 709 Alta Vista Dr., Unit #105
McAllen, Texas 78501 Laredo, Texas 78041
Toll Free: 1-800-619-0689 Toll Free: 1-800-619-0689
Tel: (956) 467-0111 Tel: (956) 267-5739
Fax: (956) 467-1742 Fax: (956) 267-1345
 DTPA Demand —Bit Sonic Trading Co., Inc. Page 3 of 10

gathering procedures and insufficient testing to support Maxum's position at or near the time
insured reported his claim.
II. Breach of Contract

A. Breach of contract

As you know, the insured has made a claim under the policy of insurance sold to him by
Maxum. To date, the handling of the claims for wind and water damage has resulted in
significant problems for my client.

Moreover, by failing to pay benefits under the policy of insurance, Maxum breached the
contract of insurance that exists between your client and my client. As a result, my client is
entitled to recover actual damages, consequential damages and attorney's fees pursuant to
§38.001 of the Texas Civil Practice & Remedies Code because of your breach of contract.

III. Bad Faith Claims

A. Breach of Duty of Good Faith and Fair Dealing: Bad Faith

In addition, Maxum violated the duty of good faith and fair dealing by refusing to pay a
just amount and underestimating the claim in question even though Maxum knew or should have
known that it was reasonably clear the claim was covered, Maxum's breach of the duty of good
faith and fair dealing have proximately caused injury and damage to my client.

IV. DTPA

Bil Sonic Trading Co., Inc. is a "consumer(s)" within the definition as set forth in the
DTPA because he purchased an insurance policy from Maxum. It was represented to my client
that this policy of insurance was in full force and effect for the policy period, and that any and all
claims made by the insured would be handled in a manner consistent with the guidelines set forth
in the Texas Insurance Code. In addition, my clients are also "person(s)" under the Texas
Insurance Code withstanding to bring claims under the Texas Insurance Code.

The DTPA violations include but are not limited to:

A. Violations of Texas Business and Commerce Code section 17.46(3)(2),(5)412) and

(24)

1. 17.46(b)(2) Causing confusion or misunderstanding as to the course, sponsorship,

approval, or certification of goods or services.

Maxum failed to timely send a properly trained inspector and/or adjuster to analyze the
damage. Maxum's inspector, GORDON M. SPEARS, went to Bil Sonic Trading Co.,
Inc.'s property, did a short inspection of Bi! Sonic Trading Co., Inc.'s property and
produced an outcome oriented report that failed to include interior water and structural

McAllen Laredo
805 Dallas Ave. 709 Alta Vista Dr., Unit #105
McAllen, Texas 78501 Laredo, Texas 78041
Toll Free: 1-800-619-0689 Toll Free: 1-800-619-0689
Tel: (956) 467-0111 Tel: (956) 267-5739
Fax: (956) 467-1742 Fax: (956) 267-1345
 DTPA Demand — Bil Sonic Trading Co., Inc. Page 4 of 10

damage. Maxum failed to get the necessary facts and background information on the loss
to come to its conclusion. Maxum sent adjuster, GORDON M. SPEARS, to inspect the
property. GORDON M. SPEARS included damages to principal areas such as the roof
and exterior. However, Maxum failed to include significant damages comprising of
interior damage to walls, ceilings, windows, doors, floors (i.e including but not limited to
hallways, entryway, office, closets etc.) and expenses associated with packing and
preserving personal items during repairs. Additionally, Maxum failed to properly inspect
the roof and investigate the origins of water penetration. To date, Maxum has not paid
for covered damages relating to items mentioned above not covered by Maxum;

2. 17.46(b)(5) Representing that goods or services have sponsorship, approval,

characteristics, ingredients, uses, benefits, or quantities they do not have, or that a person
has a sponsorship, approval, status, affiliation, or connection she does not have.

Maxum failed to timely send a properly trained inspector and/or adjuster to analyze the
damage. Maxum's inspector, GORDON M. SPEARS, went to Bil Sonic Trading Co.,
Inc.'s property, did a short inspection of Bil Sonic Trading Co., Inc.'s property and
produced an outcome oriented report that failed to include interior water and structural
damage. Maxum failed to get the necessary facts and background information on the loss
to come to its conclusion. Maxum sent adjuster, GORDON M. SPEARS, to inspect the
property. GORDON M. SPEARS included damages to principal areas such as the roof
and exterior. However, Maxum failed to include significant damages comprising of
interior damage to walls, ceilings, windows, doors, floors (i.e including but not limited to
hallways, entryway, office, closets etc.) and expenses associated with packing and
preserving personal items during repairs. Additionally, Maxum failed to properly inspect
the roof and investigate the origins of water penetration. To date, Maxum has not paid
for covered damages relating to items mentioned above not covered by Maxum;

3. 17.46(b)(12) Representing that an agreement confers or involves rights, remedies, or

obligations that it does not, or that are prohibited by law.

Maxum failed to timely send a properly trained inspector and/or adjuster to analyze the
damage Maxum's inspector, GORDON M. SPEARS, went to Bil Sonic Trading Co.,
Inc.'s property, did a short inspection of Bil Sonic Trading Co., Inc.'s property and
produced an outcome oriented report that failed to include interior water and structural
damage. Maxum failed to get the necessary facts and background information on the loss
to come to its conclusion. Maxum sent adjuster, GORDON M. SPEARS, to inspect the
property. GORDON M. SPEARS included damages to principal areas such as the roof
and exterior. However, Maxum failed to include significant damages comprising of
interior damage to walls, ceilings, windows, doors, floors (i.e including but not limited to
hallways, entryway, office, closets etc.) and expenses associated with packing and
preserving personal items during repairs. Additionally, Maxum failed to properly inspect
the roof and investigate the origins of water penetration. To date, Maxum has not paid
for covered damages relating to items mentioned above not covered by Maxum;

McAllen Laredo
805 Dallas Ave. 709 Alta Vista Dr., Unit #105
McAllen, Texas 78501 Laredo, Texas 78041
Toll Free: 1-800-619-0689 Toll Free: 1-800-619-0689
Tel: (956) 467-0111 Tel: (956) 267-5739
Fax: (956) 467-1742 Fax: (956) 267-1345
 DTPA Demand — Bil Sonic Trading Co., Inc. Page 5 of 10

4. 17.46(h)(24) Failure to disclose information concerning goods or services which was

known at the time of the transaction if such failure to disclose such information was
intended to induce the consumer into a transaction into which the consumer would not
have entered had the information been disclosed.

Maxum failed to timely send a properly trained inspector and/or adjuster to analyze the
damage. Maxum's inspector, GORDON M. SPEARS, went to Bil Sonic Trading Co.,
Inc.'s property, did a short inspection of Bil Sonic Trading Co., Inc.'s property and
produced an outcome oriented report that failed to include interior water and structural
damage. Maxum failed to get the necessary facts and background information on the loss
to come to its conclusion. Maxum sent adjuster, GORDON M. SPEARS, to inspect the
property. GORDON M. SPEARS included damages to principal areas such as the roof
and exterior. However, Maxum failed to include significant damages comprising of
interior damage to walls, ceilings, windows, doors, floors (i.e including but not limited to
hallways, entryway, office, closets etc.) and expenses associated with packing and
preserving personal items during repairs. Additionally, Maxum failed to properly inspect
the roof and investigate the origins of water penetration. To date, Maxum has not paid
for covered damages relating to items mentioned above not covered by Maxum;

B. Violations of Texas Insurance Code Section 541.151 (1) and (2): GORDON M.
SPEARS and Maxum have violated the Texas Insurance Code in the following manner
including, but are not limited to the following deemed to be unfair or deceptive acts or
practices in the business of insurance:

and Specifically: Violations of Texas Insurance Code Section 541.051 (1)(a) and (b);
541.060(a)(1), (2)(A), (2)(B), (3) and (7); 541.061(1),(2),(3),

5. Sec. 541.051 (1)(a) and (b): Making, issuing, circulating, or causing to be made, issued,
or circulated any estimate, illustration, circular, or statement misrepresenting the terms of
any policy and the benefits or advantages promised by any policy.

Maxum failed to timely send a properly trained inspector and/or adjuster to analyze the
damage. Maxum's inspector, GORDON M. SPEARS, went to Bil Sonic Trading Co.,
Inc.'s property, did a short inspection of Bil Sonic Trading Co., Inc.'s property and
produced an outcome oriented report that failed to include interior water and structural
damage. Maxum failed to get the necessary facts and background information on the loss
to come to its conclusion. Maxum sent adjuster, GORDON M. SPEARS, to inspect the
property. GORDON M. SPEARS included damages to principal areas such as the roof
and exterior. However, Maxum failed to include significant damages comprising of
interior damage to walls, ceilings, windows, doors, floors (i.e including but not limited to
hallways, entryway, office, closets etc.) and expenses associated with packing and
preserving personal items during repairs. Additionally, Maxum failed to properly inspect
the roof and investigate the origins of water penetration. To date, Maxum has not paid
for covered damages relating to items mentioned above not covered by Maxum;

McAllen Laredo
805 Dallas Ave. 709 Alta Vista Dr., Unit #105
McAllen, Texas 78501 Laredo, Texas 78041
Toll Free: 1-800-619-0689 Toll Free: 1-800-619-0689
Tel: (956) 467-0111 Tel: (956) 267-5739
Fax: (956) 467-1742 Fax: (956) 267-1345
 DTPA Demand — Bil Sonic Trading Co., Inc. Page 6 of 10

6. Sec. 541.061 (1): Making an untrue statement of material fact.

Maxum failed to timely send a properly trained inspector and/or adjuster to analyze the
damage. Maxum's inspector, GORDON M. SPEARS, went to Bil Sonic Trading Co.,
Inc.'s property, did a short inspection of Bil Sonic Trading Co., Inc.'s property and
produced an outcome oriented report that failed to include interior water and structural
damage. Maxum failed to get the necessary facts and background information on the loss
to come to its conclusion. Maxum sent adjuster, GORDON M. SPEARS, to inspect the
property. GORDON M. SPEARS included damages to principal areas such as the roof
and exterior. However, Maxum failed to include significant damages comprising of
interior damage to walls, ceilings, windows, doors, floors (i.e including but not limited to
hallways, entryway, office, closets etc.) and expenses associated with packing and
preserving personal items during repairs. Additionally, Maxum failed to properly inspect
the roof and investigate the origins of water penetration. To date, Maxum has not paid
for covered damages relating to items mentioned above not covered by Maxum;

7. Sec. 541.061 (2): Failing to state a material fact that is necessary to make other
statements made not misleading, considering the circumstances under which the
statements were made.

Maxum failed to timely send a properly trained inspector and/or adjuster to analyze the
damage. Maxum's inspector, GORDON M. SPEARS, went to Bil Sonic Trading Co.,
Inc.'s property, did a short inspection of Bil Some Trading Co., Inc.'s property and
produced an outcome oriented report that failed to include interior water and structural
damage. Maxum failed to get the necessary facts and background information on the loss
to come to its conclusion. Maxum sent adjuster, GORDON M. SPEARS, to inspect the
property. GORDON M. SPEARS included damages to principal areas such as the roof
and exterior. However, Maxum failed to include significant damages comprising of
interior damage to walls, ceilings, windows, doors, floors (i.e including but not limited to
hallways, entryway, office, closets etc.) and expenses associated with packing and
preserving personal items during repairs. Additionally, Maxum failed to properly inspect
the roof and investigate the origins of water penetration. To date, Maxum has not paid
for covered damages relating to items mentioned above not covered by Maxum;

8. Sec. 541.061 (3): Making a statement in such manner as to mislead a reasonably prudent
person to a false conclusion of a material fact.

Maxum failed to timely send a properly trained inspector and/or adjuster to analyze the
damage. Maxum's inspector, GORDON M. SPEARS, went to Bil Sonic Trading Co.,
Inc.'s property, did a short inspection of Bil Sonic Trading Co., Inc.'s property and
produced an outcome oriented report that failed to include interior water and structural
damage. Maxum failed to get the necessary facts and background information on the loss
to come to its conclusion. Maxum sent adjuster, GORDON M. SPEARS, to inspect the
property. GORDON M. SPEARS included damages to principal areas such as the roof
and exterior. However, Maxum failed to include significant damages comprising of
interior damage to walls, ceilings, windows, doors, floors (i.e including but not limited to

McAllen Laredo

$f)
805 Dallas Ave. 709 Alta Vista Dr., Unit #105
McAllen, Texas 78501 Laredo, Texas 78041
Toll Free: 1-800-619-0689 Toll Free: 1-800-619-0689
Tel: (956) 467-0111 Tel: (956) 267-5739
Fax: (956) 467-1742 Fax: (956) 267-1345
 DTPA Demand — Bil Sonic Trading Co., Inc. Page 7 of 10

hallways, entryway, office, closets etc.) and expenses associated with packing and
preserving personal items during repairs. Additionally, Maxum failed to properly inspect
the roof and investigate the origins of water penetration. To date, Maxum has not paid
for covered damages relating to items mentioned above not covered by Maxum;

9. Sec. 541.060 (a)(1): Misrepresenting to a claimant a material fact or policy provision

relating to coverage at issue.

Maxum failed to timely send a properly trained inspector and/or adjuster to analyze the
damage. Maxum's inspector, GORDON M. SPEARS, went to Bil Sonic Trading Co.,
Inc.'s property, did a short inspection of Bil Sonic Trading Co., Inc.'s property and
produced an outcome oriented report that failed to include interior water and structural
damage. Maxum failed to get the necessary facts and background information on the loss
to come to its conclusion. Maxum sent adjuster, GORDON M. SPEARS, to inspect the
property. GORDON M. SPEARS included damages to principal areas such as the roof
and exterior. However, Maxum failed to include significant damages comprising of
interior damage to walls, ceilings, windows, doors, floors (i.e including but not limited to
hallways, entryway, office, closets etc.) and expenses associated with packing and
preserving personal items during repairs. Additionally, Maxum failed to properly inspect
the roof and investigate the origins of water penetration. To date, Maxum has not paid
for covered damages relating to items mentioned above not covered by Maxum;

10. Sec. 541.060(a)(2)(A): Failing to attempt in good faith to effectuate a prompt, fair, and
equitable settlement of claim with respect to which the insurers' liability has become
reasonably clear.

Maxum failed to timely send a properly trained inspector and/or adjuster to analyze the
damage. Maxum's inspector, GORDON M. SPEARS, went to Bil Sonic Trading Ca,
Inc.'s property, did a short inspection of Bil Sonic Trading Co., Inc.'s property and
produced an outcome oriented report that failed to include interior water and structural
damage. Maxum failed to get the necessary facts and background information on the loss
to come to its conclusion. Maxum sent adjuster, GORDON M. SPEARS, to inspect the
property. GORDON M. SPEARS included damages to principal areas such as the roof
and exterior. However, Maxum failed to include significant damages comprising of
interior damage to walls, ceilings, windows, doors, floors (i.e including but not limited to
hallways, entryway, office, closets etc.) and expenses associated with packing and
preserving personal items during repairs. Additionally, Maxum failed to properly inspect
the roof and investigate the origins of water penetration. To date, Maxum has not paid
for covered damages relating to items mentioned above not covered by Maxum;

11. 541.060(a)(3): Failing to provide promptly to a policyholder a reasonable explanation of

the basis in the policy, in relation to the facts or applicable law, for the insurer's denial of
a claim or for the offer of a compromise settlement of a claim.

Maxum failed to timely send a properly trained inspector and/or adjuster to analyze the
damage. Maxum's inspector, GORDON M. SPEARS, went to Bil Sonic Trading Co.,

McAllen Laredo
805 Dallas Ave. 709 Alta Vista Dr., Unit #105
McAllen, Texas 78501 Laredo, Texas 78041
Toll Free: 1-800-619-0689 Toll Free: 1-800-619-0689
Tel: (956) 467-0111 Tel: (956) 267-5739
Fax: (956) 467-1742 Fax: (956) 267-1345
 DTPA Demand — Bil Sonic Trading Co., Inc. Page 8 of 10

Inc.'s property, did a short inspection of Bil Sonic Trading Co., Inc.'s property and
produced an outcome oriented report that failed to include interior water and structural
damage. Maxum failed to get the necessary facts and background information on the loss
to come to its conclusion. Maxum sent adjuster, GORDON M. SPEARS, to inspect the
property. GORDON M. SPEARS included damages to principal areas such as the roof
and exterior. However, Maxum failed to include significant damages comprising of
interior damage to walls, ceilings, windows, doors, floors (i.e including but not limited to
hallways, entryway, office, closets etc.) and expenses associated with packing and
preserving personal items during repairs. Additionally, Maxum failed to properly inspect
the roof and investigate the origins of water penetration. To date, Maxum has not paid
for covered damages relating to items mentioned above not covered by Maxum;

12. 541.060(a)(7): Refusing to pay a claim without conducting a reasonable investigation.

Maxum failed to timely send a properly trained inspector and/or adjuster to analyze the
damage. Maxum's inspector, GORDON M. SPEARS, went to Bil Sonic Trading Co.,
Inc.'s property, did a short inspection of Bil Sonic Trading Co., Inc.'s property and
produced an outcome oriented report that failed to include interior water and structural
damage. Maxum failed to get the necessary facts and background information on the loss
to come to its conclusion. Maxum sent adjuster, GORDON M. SPEARS, to inspect the
property. GORDON M. SPEARS included damages to principal areas such as the roof
and exterior. However, Maxum failed to include significant damages comprising of
interior damage to walls, ceilings, windows, doors, floors (i.e including but not limited to
hallways, entryway, office, closets etc.) and expenses associated with packing and
preserving personal items during repairs. Additionally, Maxum failed to properly inspect
the roof and investigate the origins of water penetration. To date, Maxum has not paid
for covered damages relating to items mentioned above not covered by Maxum;

13. Sec. 541.151 (2): Specifically enumerated in Section 17.46(b) of the Texas Business and
Commerce Code.

V.

Maxum's actions are in violation of the DTPA and constitute producing causes of
damage to my client. Because of the nature of the claims and the circumstances surrounding the
losses in question, it is reasonably clear that Maxum's violations of the DTPA were "knowing"
violations of the DTPA and the Texas Insurance Code sufficient to allow the imposition of treble
damages. Moreover, Maxum "knowing" violations of the Texas DTPA have caused and continue
to cause mental anguish to my client. In addition, because of the specific nature of Maxum's
violations of the DTPA, my client is entitled to recover attorney's fees.

The potential costs of fixing my client's water damage claim is significant, and that is
why my client turned to Maxum, for assistance in this time of dire need. However, instead of
help or adequate assistance, my clients have suffered significant and real harm because of
Maxum's decisions.

McAllen Laredo
805 Dallas Ave. 709 Alta Vista Dr., Unit #105
McAllen, Texas 78501 Laredo, Texas 78041
Toll Free: 1-800-619-0689 Toll Free: 1-800-619-0689
Tel: (956) 467-0111 Tel: (956) 267-5739
Fax: (956) 467-1742 Fax: (956) 267-1345
 DTPA Demand — Bil Sonic Trading Co., Inc. Page 9 of 10

As a result, please allow this correspondence to constitute notice under the Texas
Deceptive Trade Practices Act and under the Texas Insurance Code of the claim, against Maxum.
Please allow this correspondence to serve as notice pursuant to Chapter 38.001 of the Texas Civil
Practice & Remedies Code.

The damages suffered by our client to date include:

Economic Damages
$110,045

18% Per Annum (Approx. 10 months)

$16,506.75

18% Per Annum (Approx. 1.5 years: At Time of Trial)

$ 29,712.15

My client is entitled 18% per annum from the date of loss or of the wrongful denial. In
addition, my client is also entitled to mental anguish and attorney's fees. At this time, we are
only seeking $7,000.00 for attorney fees for work done to date, if and only the current demand is
accepted and met. However, if you feel that further litigation is needed, the following is a
breakdown of attorney fees in this case.

Proposed Attorney Fees

Stage in Case Work done & Estimated Hours Total Fees

Pre-Litigation Client meetings, DTPA, file review, $7,000.00

etc. (20)
Litigation Mediation, discovery depos, etc. (100) $35,000.00
Preparation for Trial Review, trial motions, jury charge, etc. $21,000.00
(60)
Trial Setting Trial (2-3 days) (40) $14,000.00
Total Attorney Fees: $77,000.00 _

The total attorney fees, in this case, would be $77,000.00 based on an hour fee of
$350.00. We may also be entitled to additional damages under the statute and common law.

Please let this letter serve as a demand for $133,551.75 which includes attorney fees and
18% per annum interest as of today (pre-litigation). If we should go to trial, the amount of the
demand with the total for attorney fees and per annum interest will be $216,757.15. Your
professional courtesy with this matter is greatly appreciated. Should you have any questions
and/or require additional information, please do not hesitate to contact me at (956) 467-0111.
Please send all correspondence and/or responses in regard to my McAllen office. It would be
greatly appreciated to receive acknowledgment of this demand within thirty (30) days.

McAllen Laredo
805 Dallas Ave. 709 Alta Vista Dr., Unit #105
McAllen, Texas 78501 Laredo, Texas 78041
Toll Free: 1-800-619-0689 Toll Free: 1-800-619-0689
Tel: (956) 467-0111 Tel: (956) 267-5739
Fax: (956) 467-1742 Fax: (956) 267-1345
 DTPA Demand — Bil Sonic Trading Co., Inc. Page 10 of 10

A copy of this notice has been provided to the claimant as required by the Texas
Insurance Code.

If you wish to reply, please forward any and all correspondence to

jolmsaenz1aw0t,gmail.com and johnsaenzlaw.emailsqgmail.com.

McAllen Laredo
805 Dallas Ave. 709 Alta Vista Dr., Unit #105
McAllen, Texas 78501 Laredo, Texas 78041
Toll Free: 1-800-619-0689 Toll Free: 1-800-619-0689
Tel: (956) 467-0111 Tel: (956) 267-5739
Fax: (956) 467-1742 Fax: (956) 267-1345