Proper Inconsistent Pleading Defeats Policy Anti-Assignment Condition

Amended Complaint Provides Escape from Anti-Assignment Condition

Post number 5345

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State Farm’s Responsive Pleading Defeated Motion on Anti Assignment Condition

In Tyra Caire Treadway v. State Farm Fire And Casualty Company, Civil Action No. 23-6834, United States District Court, E.D. Louisiana (April 28, 2026) Plaintiff Tyra Caire Treadway owned property at 7000-02 Jeannette Street, New Orleans, Louisiana, which was insured under a State Farm homeowners’ policy.

Hurricane Ida struck Louisiana on August 29, 2021, causing damage to the property. Nearly two years later, on August 9, 2023, Treadway sold the property to M1SRJT Jeanette, LLC and assigned her State Farm insurance claim, including the right to pursue additional damages and penalties for alleged bad faith conduct by State Farm.

State Farm’s policy contains an anti-assignment clause, stating that the assignment of claims or rights under the policy is void unless State Farm provides written consent.

State Farm, in its Answer, denied M1SRJT’s status as assignee and raised defenses including lack of standing for Treadway.

DISCUSSION AND ANALYSIS

The Court denied State Farm’s motion for judgment on the pleadings, allowing Plaintiffs’ claims to proceed. The “material fact” at issue here is whether Treadway assigned the insurance claim to M1SRJT before filing the lawsuit. State Farm denied the allegation in its Answer.

Any inconsistencies found in the factual and legal theories presented in the parties’ pleadings are permissible since a party may state as many separate claims or defenses as it has.

Fortunately for both parties, the Federal Rules of Civil Procedure permit the pleading of such apparent inconsistencies any inconsistency failing to admit the Agreement is a valid enforceable contract while also asserting claims based on breach of the Agreement is not a valid reason for dismissal. Accordingly, the Court denies Defendant’s motion for judgment on the pleadings.

ZALMA OPINION

Inconsistent pleadings worked against a series of answers to the inconsistent pleading with State Farm denying the assignment and then seeking to dismiss because of its anti-assignment clause. Of course, State Farm can change its pleading and admit the truth of the alleged assignment and them move for summary judgment.

(c) 2026 Barry Zalma & ClaimSchool, Inc.

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