Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, April 16, 1994 TAG: 9404180144
SECTION: VIRGINIA PAGE: C2 EDITION: METRO
SOURCE: Associated Press
DATELINE: VIRGINIA BEACH LENGTH: Medium
The owners' attorney denies the accusation.
The companies - United States Fidelity & Guaranty and American Bankers - have filed a lawsuit against Joseph and Judy Houska in U.S. District Court in Norfolk.
The insurers want a judge to declare that they are not liable for claims from the fire.
The house on Birdneck Point, one of the most expensive homes in Virginia Beach, was gutted early on Aug. 7, 1992. The Houskas were out of town, and the house, custom-built by them two years earlier, had been on the market for two weeks.
At the time, investigators said the fire was arson, but no suspects were identified, and no one ever was charged. The insurance companies contend the Houskas set the blaze or had it set and then claimed $1.89 million in losses.
Lawyers for the insurance companies would not comment on the suit.
But the couple's attorney, William F. Merlin of Tampa, Fla., said his clients will file a counterclaim against the insurance firms.
``We believe [the companies] wrongfully denied the insurance claim. We will seek damages,'' Merlin said.
The two-story house, which had five bedrooms and sat on 13/4 acres on Linkhorn Bay, was on the market for $1.6 million. After the fire, the Houskas filed a claim for $1.24 million for the house and $647,000 for personal belongings, the lawsuit said.
City assessment records show that only eight houses in Virginia Beach are valued for tax purposes at more than $1.2 million.
Houska was a partner in a development company that filed for Chapter 11 bankruptcy protection about a year before the fire. The couple also filed for personal bankruptcy about the same time, according to court records, and they were in Chapter 7 liquidation at the time of the fire.
by CNB